A company which has only Rental Income in excess of Rs.60 Lakhs. It shows this income under the head of 'Income from House Property'. Is it liable for Tax Audit?
CA Deepak Gupta (In Practice) (81 Points)
04 November 2011A company which has only Rental Income in excess of Rs.60 Lakhs. It shows this income under the head of 'Income from House Property'. Is it liable for Tax Audit?
Girish
(Student)
(67 Points)
Replied 04 November 2011
Tax audit is liable only for income from Bussiness or Profession not from House proprety income ( any other Heads of Income).
Sec 44AB comes under the head of Income from Bussiness Or Profession.
CA Deepak Gupta
(In Practice)
(81 Points)
Replied 04 November 2011
What does in Section 44AB made you suggest that?
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 09 November 2011
The moot issue is if are having income from non operating business substantially more than normal operating income the AO might be inclined to treat the non operating income (here rentals) as buisness income. The need to justify that it does not form part of core income will be a difficult exercise it seems.
Section 44AB also speaks of gross receipts.
I am expecting other members to share their thoughts, please.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 10 November 2011
may i expect senior members to share their esteemed thoughts please
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 10 November 2011
as specified by the query holder, the receipent is "comp[any" which is under mandatory audit, so no exemption for company for even no income.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 11 January 2012
Any further thoughts on this , Friends
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 16 January 2012
Any further thoughts on this.
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