Plz tell whether Tax Audit is required for the people whose income are exempt from tax?
Like u/s 10(26) income of Tribal people are exempt from tax
One of friend is tribal, his gross receipts exceeds Rs.70 lacs, he does not maintain books of accounts so Audit cannot be done,
Now if he submit the return( For claiming Refund) without doing the Audit which penalty will arise i.e for Non maintanence of books of accounts or for not conducting audit.
Hi Manoj,
| Originally posted by : Sanat kumar | ||
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Hi Manoj, In my opinion, Section 44AB makes it mandatory for every person carrying on any business or profession to get his accounts audited if his turnover in business exceed 60 lakhs or Gross receipt in profession exceeds15 lakhs. Section 44AB does'nt provide exemption from the compulsory Tax Audit to any person whose income is exempt from tax. Section 44 AA is also applicable in this case. (Assuming PGBP) So in this case I think both penalty may be levied by the deptt. u/s 271A & 271B. correct |
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| Originally posted by : manoj | ||
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Plz tell whether Tax Audit is required for the people whose income are exempt from tax? Like u/s 10(26) income of Tribal people are exempt from tax One of friend is tribal, his gross receipts exceeds Rs. 70 lacs, he does not maintain books of accounts so Audit cannot be done, Now if he submit the return( For claiming Refund) without doing the Audit which penalty will arise i.e for Non maintanence of books of accounts or for not conducting audit. |
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thnks for your reply, but i have read somewhere that penalty is also a part of tax, now since this people are exempt then why penalty should arise
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