Tax audit or not

Tax queries 1317 views 12 replies

rajesh

Accountant

583 Points Joined May 2009

Sir

I am doing a Sub Contract work and i was received in FY- 2010-11 Rs. 58,50,000/- and I am also an Insurance agent and I was get a Insurance commission Rs. 2,00,000 in the FY-2010-11 till the date my it return not filed i want file my it return before 31st March my query is

1) I am Audit my Accounts U/s 44AB or Not because total Gross Receipts is more than 60lks

2) if non tax audit i will shown my sub contract gross receipts u/s 44ad and ofered 8% N.P. and what about the Insurance commission and which head is shown insurance commission Income from other source or Professional Income

Please tell

Thanks Inadvacne

Replies (12)

shankar

22 Points Joined March 2009

Hi Rajesh

Insurance commission Rs. 2lacs can be shown under Income From Other Sources and you can claim the benefit of section 44AD and offer 8% of Rs. 58.50 lacs

PRADEEP REDDY

CHARTERED ACCOUNTANT

664 Points Joined December 2009

1.since your gross receipts are more than Rs.60 lacs you are liable for tax audit under sec 44 AD.

2.Insurance commission is treated as income from other source.

3.You can file return for F.Y 2010-11 with in 31 march 2013

sharad rai

learner

178 Points Joined August 2010

AUDIT IS REQUIRED U/S 44 AD, COMMISSION FROM LIC IS CONSIDER INCOME FROM OTHER SOURCES . SINCE YOUR TOTAL INCOME EXCEED AUDIT LIMIT, SO AUDIT IS COMPULSORY FOR YOU.

Jagjeet singh sahney

70 Points Joined February 2010

Tax audit is not compulsory for you as your GROSS RECEIPTS from Sub Contract Business do not exceed 60 Lakhs . You can claim the benefit of Section 44AD and offer your income to be 8% of the Gross Receipts from SubContract Business

Insurance commission can be shown as Income from Other Sources

ASHU SHARMA

CA STUDENT

194 Points Joined November 2009

Tax audit is not mandatory when your Gross receipts from business are not more than 60Lacs. You have received payment from Sub Contract Business which do not exceed Rs. 60 Lakhs . Therefore audit is not required and You can claim the benefit of Section 44AD and offer your income to be 8% of the Gross Receipts from SubContract Business

Insurance commission can be shown as Income from Other Sources.

CA SUMANTH

LEARNER.....

294 Points Joined November 2008

Since Gross receipts from business does not exeed 60 Laks tax audit not necessary. You can file return u/s 44AD. Insurance commission you should show in Income from other sources.

Shaik

M.com IC(W)AI - Inter

723 Points Joined December 2010

Dear Sir,

May i know what is tax audit limit for individuals and Others.?

TARUN ARORA

Fresher CA

132 Points Joined May 2011

Tax Audit is not applicable in your case as your Gross receipts are not Exceeding 60 lakhs...2 lakh received from insurance commision should be considered as income from other souces....You can clain Benefit of Sec. 44AD By making Presumptive Income & claim 8% of 58,50,000 as your Net income...

Ashok R. Shukla

C.A. C.S.

108 Points Joined February 2009

Completely Agree with AASHU SHARMA

Jitendra Vyas

Commercial Officer

178 Points Joined February 2012

Yes required audit u/s 44AD because section required total income of an assessee is exceed 60 lacs accounts should be audited by a ca

KALYANARAMAN KUMAR

PROPRIETOR CONCERN

30 Points Joined March 2012

i am also agree with Aashu Sharma views , LIC commission we can show other source of income and it is not business income Hence Tax audit doubt does not arise here

kavita rani

article assitant. doing MBA

46 Points Joined January 2009

Tax audit is not necessary for you as your gross receipts from business are not exceeding from Rs. 60/- lacs. Insurance commission will come under Income from Other Sources.