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Gaurav Kumar Gupta (Advocate)     27 July 2012

For audit

Dear Sir/Madam,


Please give me detail for Audit compulsary or not

My client recd. 15 Lac + gross commission form  L I C and other income

so pls guide me on this client Audit is compulsory or not

or this client go to business or profession category or other sources of income cetagory

pls give me answer , wait for your valuable reply

Thanks & regards

Gaurav Kr Gupta, Advocate

Agra



Learning

 4 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     30 July 2012

Audit is compulsory. When income exceeds Rs.10 lakhs per year.

JHARNA SAXENA (Partner)     30 July 2012

Audit is cumpulsory under section 44B of Income Tax India 1961 if your professional receipts exceeds 15 Lac (For last year it is 10 Lacs).

For your reference please read section 44AB:-

 

44AB. 21Every person,—

 (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 21a[22[sixty lakh rupees]] in any previous year 23[***]; or

 (b) carrying on profession shall, if his gross receipts in profession exceed 23a[24[fifteen lakh rupees]] in any 25[previous year; or

 (c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under 26[section 44AE ] 27[orsection 44BB or section 44BBB], as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any 28[previous year; or]] 29[***]

 

You can feel free to discuss in detail if needed at jsscompany2012@gmail.com


Regards

CA Jharna Saxena

B.COM, CA, CS

Ganesh babu (ARTICLE ASSISTANT)     04 September 2012

in any previous years gross recepts from profession exceeds 15 lakhs,then u/s 44 ab,tax audit is applicable

lic agent is a profession so tax audit applicable

R RAJAGOPALAN (ADVOCATE)     05 September 2012

Your Query:  "Audit is compulsory or not or this client go to business or profession category or other sources of income cetagory", ie; whether the insurance agency is a business, or profession, or any other activity so as to come under 'Other Sources'

Reply: It is not a 'profession' as no professional knowledge is required to be exercised.

Whether it is a 'business' or any other activity cfalling under Other Sources, is very much debatable.

However it is returned/assessed as 'business'.


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