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Tax audit

A single person does both business and profession then for knowing the compliance with audit how the limits will be applied?


Satya  Shashank

Satya Shashank

CA Inter

13K+

11-Jul-20

60

Answers (5)

No answers!


Thread Starter

Satya  Shashank

Satya Shashank

CA Inter

13K+

13-Jul-20

Separate limits for business total sales/ turnover exceeds Rs. 1 crore or profession Gross receipts exceeds Rs. 50 lakhs will be applicable.


KEERTHI PRIYA

KEERTHI PRIYA

CA Inter

695

13-Jul-20

That mean there will be separate tax audit for business and separate one for profession and the Audit is not based on person but based on the work he is doing, is that so?


Thread Starter

Satya  Shashank

Satya Shashank

CA Inter

13K+

13-Jul-20

In Section 44AB it is given that gross receipts/turnover in case of business or gross receipts in case of profession exceeds the prescribed limits then tax audit is applicable. Here OR can be interpreted as any of the conditions.So the limit is about gross receipts whether business or profession and the gross receipts includes the amounts which are received or receivable on sale of goods, hence when a person having both business and profession, if his gross receipts exceeds 50,00,000/- then he has to undergo audit u/s 44AB hence it person specific.


KEERTHI PRIYA

KEERTHI PRIYA

CA Inter

695

14-Jul-20

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