R.Suresh (Sr. Executive) (394 Points)
27 May 2009In a individual working as a employee(General Manager) of the company he receiving salary for a year is more than 40 lakh. And also Individual having Pension & Interest Income.
1. Which ITR is applicable for this individual ITR 1 or ITR 2 or ITR 4
2. Whether H/S is under go by Tax Audit u/s 44AB?
3.What is the due date of return either 31 July or 30 September?
4.Individual get any Audit Report from Auditor?
Please clarify this query it is very urgent.
Thanks in advance for all reply.
PRANAV MISHRA
(CA Final student)
(573 Points)
Replied 27 May 2009
In my opinion as the General Manager is deriving salary income there is no question of business income in this case.For applicability of Sec 44AB receipt of business income is necessary.General manager is the employee and company the employer.
Return to be filed in ITR 1
No question of Tax audit for salary
Due date for filing return is 31st July 2009
As there is no tax audit so no need for any report from auditor
PiyushAgrawal
(Chartered acooutant in practice)
(575 Points)
Replied 27 May 2009
i think Pranav is right...
santhosh
(Student)
(1174 Points)
Replied 28 May 2009
ya, i think pranav is correct... Act is silent in case of other heads of income....
Piyush Jain
(CA)
(283 Points)
Replied 28 May 2009
Sec 44AB provides that if your gross receipt/ turnover exceeds Rs. 40 lakh it will be liable to tax audit. And in the case pf professional the receipt is Rs. 10 lakh. Now where this sec provides for business.
It will be liable to tax audit. ITR 2 will be applicable. 30 sep will be due date.
Correct me if i am wrong, using substantial backing from the law, or any decided case laws.
Regards
Piyush
Shekar
(CA & LCS )
(1109 Points)
Replied 28 May 2009
Hi Piyush,
Section 44AB is applicable only to Person carrying on Business or profession as Pranav has mentioned above.The heading of section 44AB itself is "AUDIT OF ACCOUNTS OF CERTAIN PERSONS CARRYING ON BUSINESS OR PROFESSION"...so please go through it.
Kedar Pande
(Self Employed)
(896 Points)
Replied 28 May 2009
Dear Piyush,
Shekhr is right. Salary income is taxable under the head Income From Salary and section 44AB specificaly talks about Income From Business and Profession. So even if you are receiveing a salary income of Rs. 1 Crore section 44AB will not come in picture.
Where you take a case of partners getting remuneration from a partnership firm.
If the remuneration crosses the limit, even the partners are reuired to be audited under section 44AB. This we have practically done with one of out clients when I was doing the articleship.
Satish
(CA Final Student)
(479 Points)
Replied 28 May 2009
as far as ITR form is concerned, ITR 1 is applicable where apart from Salary & other source income, there is no income/loss under house property or capital gains or business income. In such cases ITR 2 will be applicable
R.Suresh
(Sr. Executive)
(394 Points)
Replied 29 May 2009
Thanks for all replys i got the answers from all
Thanks
CA Shailesh +91 9393926464
(Chartered Accountant)
(2088 Points)
Replied 18 June 2009
Undoubtebly - ITR 1
CA Sakshi
(CA Practice)
(309 Points)
Replied 18 June 2009
| Originally posted by :R.Suresh | ||
| " | In a individual working as a employee(General Manager) of the company he receiving salary for a year is more than 40 lakh. And also Individual having Pension & Interest Income. 1. Which ITR is applicable for this individual ITR 1 or ITR 2 or ITR 4 2. Whether H/S is under go by Tax Audit u/s 44AB? 3.What is the due date of return either 31 July or 30 September? 4.Individual get any Audit Report from Auditor? Please clarify this query it is very urgent. Thanks in advance for all reply. |
" |
44AB is applicable in case of income taxable under head PGBP. The individual in your case is recieving Salary, Pension and interest , so no income under PGBP head. So no Tax audit requirement. Further he is liable to file ITR 1 and by 31st July.
CA Vishvesh
(Chartered Accountant)
(187 Points)
Replied 19 June 2009
hey as per sec 44AB if the turnover is exceeding 40 lacs then assessee is liable for tax audit. One can not consider salary in line with turnover. Hence there is no scope of yax audit if assessee is getting salary above Rs. 40 lacs.
CAclubindia
