Tax Audit Limit

This query is : Resolved

SHEEJITH (Querist)
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27 July 2007 The firm is arranging finance on behalf of finance company and getting commission from the finance company for the services rendered. The total commission received during the year is 17 lacs. whether tax audit is applicable for the firm? if so is there any circular/notification from the Income Tax Department

Aditya Nemani

Aditya Nemani (Expert)
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28 July 2007 The receipt of the commission would fall under Professional Receipts and hence as per provisions of section 44AB of the Income Tax Act' 1961, the firm would be eligible for Tax Audit; the provision being for receipts in excess of Rs.10,00,000/- for provisions of section 44AB to apply.

ravi kanth

ravi kanth (Expert)
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30 July 2007 Receipt of commission and earning commission doesnot involve any professional skills. It is not a professional receipt.
It is a business Receipt.. So 44AB doesnot apply since lessthan 40 lakh..

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CA Mani

CA Mani (Expert)
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01 August 2007 Ya, 44AB Shall not apply as the business income is less than Rs.40Lakhs.

Interest - It is Business income only but not professional income