yes, it is inclusive of the income declared.
and the person is required to get his books of account audited as per the provisions of section 44ad and 44ab.
Dear Abhinav,
yes, the said amount of profit from business (Rs. 125000) is included in the total income for the purpose of determining tax audit liability, but in your case, the said amount combined with income from other sources would come out to Rs. 175000..... and this is not exceeding the basic exemption limit. However, if you took that figures, just for example purpose, ignoring the basic exemption limit amount, then it's OK.
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
hey abhinav books are required to be audited in this case, coz you are showing profit less than 8% and it will not be covered u.s 44AD. you have to declare profit atleast 8% excluding income from other sources
Dear all
Please reply specific to my example. The total income is less than the basic exemption limit. so I think audit should not be applicable.
Dear Abhinav,
that's what i replied before... that according to your specific example.. you are not liable for tax audit...
CAclubindia
