| Originally posted by : Shikha Sharma | ||
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Section 44AB comes under Chapter IV - D of the Act and capital gains under chapter IV - E. Therefore no audit is required in this case. |
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44AB
Page no : 2
Bala
(Student)
(498 Points)
Replied 17 December 2010
Ganesh iyer
(C.A M.com B.com(accounting and finance) ncfm)
(75 Points)
Replied 17 December 2010
According to my interpretation of this section the provision for gross reciepts is for covering those assesses who are not carring on profession....that is basically two conditions are the the one that you have mentioned and the other for those carriying on profession hence in the section it is given as "carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds forty lakh rupees"
capital gains according to you can be covered only under the term gross reciepts.however according to my interpretation the gross reciepts referred in this section is with respect to recipts from normal course or the trading activities of the business...hence 44AB Will not be applicable..
BHAVIKA CHHOWALA
(Article Clerk)
(27 Points)
Replied 17 December 2010
In Sec 44AB as it is specifically mentioned that any turnover or gross receipts from business exceeds Rs. 40lacs then the section applies.
As it is income from Capital gain.
So the section does not apply and accounts should not be audited.
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 18 December 2010
Section 44AB will be not applicable.
So Books of Accounts are no need to get audited in this case.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 18 December 2010
Tax audit is not required. A clarification point is given in ICAI guidance note on Tax Audt
C.A. Jignesh N. Mehta
(C.A.)
(1030 Points)
Replied 18 December 2010
I agree with all our friends who have answer that Tax Audit is Not applicable.
rakesh
(CA Final)
(22 Points)
Replied 18 December 2010
nO need to get ur accounts audited sec 44AB is specific
Ganisht
(CA Final)
(196 Points)
Replied 18 December 2010
Dear Friend,
In the present situation assess have no need to get his accounts audited.
Moreover, on Business income section 28 apply. And section 28 not applied on capital Gain.
Moreover as per the section44 AB apply in the caes of business assess not cover Capital Gain.
SANYAM ARORA
(“It's hard to beat a person who never gives up.”)
(20173 Points)
Replied 18 December 2010
no need of audit dude
Bhav Bhuti Sharma
(Towards Professionalism )
(823 Points)
Replied 18 December 2010
" exceed Rs. 40 lakhs in any previous year relevant to the assessment year commencing on 1-4-1985 or any subsequent assessment year."
no need to get accounts audited
CA SUMIT LAL
(PROPRIETOR)
(83 Points)
Replied 18 December 2010
It is actually depending on the facts of the case of Capital Gain. By no means Audit is required to be done for Capital Gain computation as per the Incopme Tax Act, until and unless, AO with special approvals get the books checked by any competent authorty for assessment purposes.
So no audit is required.
R.SURESH SHRINIVASAN
(Manager r- ESI-PF)
(310 Points)
Replied 18 December 2010
Being c.a final student you should not ask like this. This is not come under 44AB
CA MANISH AGRAWAL
(Practice)
(539 Points)
Replied 18 December 2010
right sec 44AB apply only if BI execced 40 lakh.so company assess it not avail benefit of 44AD,so make book which satisfied A.O
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