If the Doctor has receipts of Rs14 lakhs and Interest Income of Rs 1.1 lakhs.whether Tax Audit will be applicable to him???
Mohammad Asif
(chartered accountant)
(191 Points)
Replied 04 May 2011
tax audit will not be applicable since the interst income is assessed under income from other sources and from profession the income is not exceeding the limit of 15 lacs.
Sumit
(Article Assistant)
(49 Points)
Replied 04 May 2011
thanks mohammad
but Interest is earned from the deposits or FD's which are created from receipts so wont it will be receipts in profession...
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 05 May 2011
Dear Sumit,
ICAI has issued a guidance not on Tax Audit wherein the following two points are worth noting.
I am not mentioning all the points from the guidance note, but only relevant points.
(i) Items of Income and/or receipts covered by the term gross receipts in business:
- The aggregate of gross income by way of interest received by the money lender.
(ii) Items of Income not forming part of the term gross receipts in business:
- Income by way of interest unless assessable as business income.
Considering these points, we can conclude that
- The doctors business/profession is not money lending
- Hence the income shall not form part of business income
- It will be taxed under other sources
- Hence, the doctor shall not be liable for audit.
Mohammad Asif is correct in his view.
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