Tax audit

This query is : Resolved

Alok mukherjee (Querist)
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29 February 2012 A merchant navy captain is earning 5 lakhs a month, annually 10months * 5L = 50L (on leave for 2 months a year)
Is he subject to tax audit?
Is his job covered under profession?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 February 2012 What is the source of income? Is is from salary?

If it is from salary, then tax audit is not required because tax audit is only in case of business/profession income.

Mihir Doshi

Mihir Doshi (Expert)
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29 February 2012 Clarify the nature of source. i.e. by way of business or salary...

Thanks
Mihir Doshi

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Alok mukherjee

Alok mukherjee (Querist)
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29 February 2012 Appointment letter speaks of compensation offered by the Shipping company to the captain. This is similar to a contract & a fresh contract is made every 3 months.
Can this be treated as salary?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 February 2012 It will be treated as professional income as employer-employee relationship does not exist.