I've a client whose professional receipts are about 7-8 lacs. Since the limit for professional receipts for 'Sec 44AB Audit' is 15 lacs for AY 11-12, the client is not subject to audit.
However, in the last year, the client hade about 6 lacs of Professional Receipts and the limit for AY 10-11was 10 lacs for 'Sec 44AB Audit'. However, the volume of the client in share transactions(which actually is not the main activity of the client) was actually about 2 crores and is similar in this year. I remember seeing a circular/notification/case law very recently where it says that irrespective of the volume, a thing cannot be taken to be the primary source of a person... Isn't this correct?
So is this client subject to audit??
CAclubindia
