23 October 2008
I am a practising chartered accountant having gross receipts of Rs 5 lakhs per annum from my proprietory concern. At the same time I am a partner in another CA firm and from that firm I get remuneration and share of profit aggregating to Rs 7 lakhs per annum. Will my accounts are to be audited u/s 44AB if the Income tax act,1961.
23 October 2008
As per section 44AB, Every person Carrying on profession shall, if his gross receipts in profession exceed ten lakh rupees in any previous year shall get his accounts of such previous year audited by an accountant before the specified date.
In my opinion, remuneration and int from partnership firm does not form part of Gross Receipts. Hence, no tax audit is required
24 October 2008
Section 28 is clear that any interest, salary etc., received by a partner of a firm from the firm are to be treated as income from business or profession as the case may be. When such receipts are to be treated as business or professional income, there is a strong case for treating such receipts as part of gross receipts.
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