ALOK RATNA (CHIEF CONSULTANT) (190 Points)
13 November 2011What is the position of audit that is to say tax audit in case of a partner of a partnership firm when the firm is having more than 60 lakh of turnover and so is under tax audit. Whether partner accounts also need to audited separately even if his total taxable income is 7 lakhs per annum..
If yes please let me know the relevant provision of law because sec. 44 AB of IT Act is not telling anything about the partner...
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 14 November 2011
If the tax audit u/s 44AB is applicable to the partnership firm then the partners of the firm are also liable to tax audit & they are also required to file their returns on or before 30th spet.
as the business of the partnership is being carried on by the partners & there is no distinct identity of the partners form the firm unlike in case of the ltd company wherein the directors are required to file their salary returns on or before 31st july even if the company is liable to tax audit u/s 44AB, hence the partners are also liable to tax audit if the firm is also liable to tax audit.
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