Login  |  Register  |  Forgot Password 
Below Login Ad
All Queries |  Resolved Queries |  Today Queries |  Become an expert Ask Query

Please Help: income tax

Posted Date : 23-Sep-2011 , 01:50:26 pm | Posted By: Anil Gupta

Category : Audit | Answers : 2| Comments : 3| Hits: 535

one firm of an individual is audited u/s 44ab and he has receipt of 20 lacs in other firm, whether the second firm is liable to audit or it can be covered u/s 44 AD as he is contractor in which the receipt is 20 lacs

Answers:
   Answer by: Ashish Karundia
Dear Anil, In your case, the second firm will be liable for tax audit, only if the second firm claims the profits to be less than 8% of the turnover i.e. less than Rs.1,60,000 [ Refer section 44AB(d) read with Section 44AD(1)of Income Tax Act, 1961]. Hope this answers your query.
   Answer by: Ashish Karundia
Dear Vipin, Here, if Anil is talking about sole properietorship firm then thereis no question of other firm liable to tax audit because the same would have already been covered in the AUDITED Firm (i.e. jiska tax audit ho chuka hai.) Further, as you righly said that tax audit is person based then please note that here a person can be a partner in two firms also, then in such case the tax audit creteria has to be seen seprately. Hope this suffice.
Comments
Posted By : CA.VIRAL JANI 26-Sep-2011, 05:31:41
Dear all, as per the section 44 AB if Total turnover exceed 60 Lacs person is liable to Tax Audit. In case of Individual always it requires to consider his total turnover for verify whether he/ She cover under Tax audit or not. However while calculating total turnover the turnovers of the firm covered under presumptive basis are not to be considered. So whether Tax audit is become applicable or not it depend on whether the person choose for presumptive basis of income or normal basis. If he/ She chooses for Normal business Individual itself is liable to tax audit and hence all his business cover under Tax audit. But if he/she choose for presumptive Income only his first business cover under Tax audit subject to requirement of 8% of profit as said by CA. Ashish. Further if any Business is cover under Presumptive basis of income than it is require to disclosed in for 3CD Clause 10. Example: In case of Individual 1. Firm A Turnover 60 Lacs Firm B Turnover 15 Lacs Total Turnover 75 Lacs Both firm Cover under Tax audit if presumptive basis of taxation not chosen. 2. Firm A Turnover 60 Lacs Firm B Turnover 15 Lacs (chosen for presumptive tax) Total Turnover 60 Lacs (For Calculation of Tax audit) Only First firm is liable to Tax audit 3. Firm A Turnover 40 Lacs Firm B Turnover 25 Lacs Total Turnover 65 Lacs Both firm Cover under Tax audit if presumptive basis of taxation not chosen. 4. Firm A Turnover 40 Lacs Firm B Turnover 25 Lacs (chosen for presumptive tax) Total Turnover 65 Lacs (For Calculation of Tax audit) No liability of Tax audit arise. Hope this clear doubt of all.
 
Posted By : CA VIPIN GARG 26-Sep-2011, 08:48:50
Yes I do agree with Viral Ji because you need to consider the total turnover of all the firms of the individual because the liability of tax audit is person based and not business based.. I mean you cannot deny the liability of tax audit by just opening another firm by another name of the same individual. Hope you got the answer you were looking, Have a nice day Anil Jiiiiiiiii
 
Posted By : CA.VIRAL JANI 23-Sep-2011, 05:34:48
Dear Mr. Anil, as per the section 44 AB if Total turnover exceed 60 lacs person is liable to Audit.In case of Individual always it require to consider his total turnover for verify whether he/She cover under Tax audit or not.So Individual it self is liable to tax audit and hence all his business cover under Tax audit. Further if any Business is cover under Presumptive basis of income than it is require to disclosed in for 3CD Clause 10.
 

Search By Categories

More Categories

Hall of Fame for Queries

Name Pic Queries Rank
Rambabu Senkarasetti 569 0
 
Vaneet Gupta 560 0
 
CA Satuti Mahajan 360 0
 
Ashish Karundia 317 0
 
Rishabh Upadhyay 300 0
 

Search Question:

 
 
www.casansaar.com
...keeps you updated

Home

  |  News

  |  Articles

  |  Discussion

  |  CA Firms

 |  Members

 |  CA Community

 |  Jobs

 |  Empanelment

 |  Files

 |  Matrimonial

 |  Students zone

 |  Queries

 |  Classified Ads

 |  Events

 |  About us

 |   Top Members

 |  Coaching Centres

  | Testimonials

 | Judiciary

 | Videos

 | Notifications/Circulars

 | Book

 | eDirectory

 | Interview

 | Website

 | Emails

 | Software

 |  Score Board

 |   Press Release  

 |   Blood Bank  

  |   Opinion Poll  

  |   Feedback
 |   Advertise us

 |   Terms & Conditions

 |   Privacy Policy

 |   Refund Policy

 |   Contact us
 |   Blog

  |   Sitemap

  |   Auditing

  |   Bank

  |   Bank branch audit

  |   Banking

  |   Black Money

  |   CA

  |   CA Announcement

  |   TDS

  |   Students Zone

  |   Custom

  |   VAT

  |   Service Tax

  |   Corporate Law

  |   General

  |   Excise

  |   SEBI

  |   Finance

  |   GST

  |   ICAI

  |   FEMA

  |   ICWAI

  |   ICSI

  |   DGFT

  |   RBI

  |   IFRS

  |   CAG

  |   Budget

  |   Merger & Acquisitions

  |   International Business

  |   Shares & Stock

  |   Excel Tips

  |   International Taxation

  |   ITR

  |   Chartered Accountant

  |   Tax Audit

  |   Companies Act

  |   Money Laundering

  |   MCA

  |   Income Tax Refund

  |   NPA

  |   Income tax software

  |   CST

  |   CA Exams

  |   CA Results

  |   CBDT

  |   Accounting Standards

  |   DIN

  |   Judical Announcement

  |   MDP

  |   PAN

  |   Whats App

  |   Secretarial Standards

  |   NGO

  |   CA Convocation

  |   Finance Bill

  |   ICAI Notification

  |   CARO

  |   COMPANIES SECRETARY

  |   Accounts

Follow Us : Twitter Icon Facebook Icon Orkut Icon Linkedin Icon Linkedin Icon
Developed By: CASANSAAR Copyright © casansaar

Top Accounting Firms,CA COMMUNITY,CA SANSAAR,Chartered Accountant,Ca Networking Firms,Partner Portal,Ca Assignments,CA,Online Communities For Chartered Accountant,Circle For Ca,CS,CMA and FINANCE,Articles By CA / CS / CMA,accounting news articles,Ca Firms In Delhi,CA ANNOUNCEMENT

accounting jobs,article trainees,best website creator,empanelment,income tax slab, ITR, TDS Chart,budget of india 2014-15,gst,auditing,Income tax,students zone,cpt,community matrimony for ca,Classified Ads,Community Matrimony For Ca,Students Zone,Coaching Classes,Company Secretary,Cost Accountant,Judiciary.