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Tax audit u/s 44ab

19 August 2011

An assessee is carrying two business. The Turnover of first business does not exciding 60lacs, but The Turnover of second business exciding 60 lacs. Is the assessee liable for Audit U/s 44AB for the both businesses?

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17 Replies

abhishek (student) (151 Points)
Replied 19 August 2011

no as per IT act he is liable for the audit only for the business which turnover is more then 60 lakhs..

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Amit Gupta (Loosening Myself) (1508 Points)
Replied 19 August 2011

Under income tax it doesnt matter if he is havin one business or more..Section 44AB is attracted if the gross receipts are more than 60 lacs from one or more businesses

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 19 August 2011

audit will be done on individual business bases

means 60 loakh limit will be seen seperately for both business

Pragnesh (AM - Taxation) (1259 Points)
Replied 19 August 2011

Setion 44AB applicable is assesse wise not business wise. Because the section starts with the words "every person" not every business.

1 Like

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 19 August 2011

turnover should be clubbed on pan card basis , per pan card if business exceeds 60L then audit is required for all business. as the return and tax audit specifies all the business and turnover of pan card holder assesee, there is no space left for separate audit and non audit summery in return,

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Sanat kumar (Chartered Accountant) (265 Points)
Replied 19 August 2011

Hi Sandip

I think, in this case the assessee is liable for tax audit u/s 44AB for both businesses. Because if the assessee carries on more than one business, the result of all business should be clubbed together in determinig the applicability of 44AB.

Eg:

Business1	Business2	Tax Audit
12 lakhs	40 lakhs	no
12 lakhs	62 lakhs	both
48 lakh	22 lakh	both

for more understanding please read the attachd guidance note.

Attached File : 306001 807161 tax audit guidance note.pdf downloaded: 753 times

3 Like

CA SANDIP HISARIYA (JOB) (32 Points)
Replied 19 August 2011

Have a liuminus Thans to all of you......

CA Shiv (Business Controller) (2987 Points)
Replied 19 August 2011

liable for tax audit as in case proprietorship business, it has to be clubbed togather... Club the T/o of the 2 business....

valji (Accounts manager-MBA) (2150 Points)
Replied 19 August 2011

AGREE WITH ABISHEK

jayesh (Pursuing Final CA) (98 Points)
Replied 19 August 2011

he is under audit as his total buss income exceeds 60 lakhs

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tarun gupta (CA FINAL) (24 Points)
Replied 19 August 2011

audit u/s 44AB is required for both the business as per IT act, 1961

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 19 August 2011

the assessee will get only one 3rd for all the business consolidated,

CA YOGESH GARG GMG PLYWOODS (BUSINESS OF PLYWOOD and PARTNER IN GUPTA & MALHOTRA CHARTERED ACCOUNTANTS) (248 Points)
Replied 20 August 2011

In this case the assessee is liable for tax audit u/s 44AB for both businesses(i.e. he has two proprietor business) Because if the assessee carries on more than one business, the result of all business should be clubbed together in determinig the applicability of 44AB.

Eg:

Business1	Business2	Tax Audit
12 lakhs	40 lakhs	no
12 lakhs	62 lakhs	both
48 lakh	22 lakh	both

But if an assessee has one proprietor business and he is also a partner in a firm then clubbing of businesses will not be done as both are separate entity...

1 Like

silvi ubal gomes (Awaiting Final Result) (82 Points)
Replied 20 August 2011

In income tax audit is assesseewise not businesswise so assessee is liable to audit both the business subject to exceptions like a business under presumptive taxation