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Glenn asked 1 year ago

Suppose A person has both business income and professional reciepts.
Where income from profession exceeds the limit of sec 44ADA and audit becomes mandatory but income from business remains within the limit of sec 44AD.. in this case ,Audit is applicable for both or only for professional income?

2 Answers
RaviRavi Staff answered 1 year ago

Sec 44AB prescribes 2 types of
 
1st audits turnover / receipts based audit
 
and
 
2nd audits if you are not following presumptive basis.
 
if assessee is eligible for 44AE / 44BB / 44BBB / 44AD / 44ADA then he has 2 options
1st go for presumptive basis or higher income declaration,  then no audit for such businesses and turnover for such businesses should be excluded while computing total turnover for other businesses 
2nd  if assessee goes for lower income declaration then he will have to get only that business audited and not all other businesses, in such case turnover of such business should be included along with other businesses for TO based audit applicability. 
further if TO / Gross Receipt based audit is attracted because of business turnover then we will have to audit of profession also and vice versa
 
so to conclude TO / Gross Receipt based audits are powerful they will include whole assessee except where presumptive basis is followed
and presumptive basis audits are not strong they will cover particular business or profession and not others.
 

RaviRavi Staff answered 1 year ago

now in case of your query if audit is applicable to profession because of gross receipt limit is crossed then this audit will cover businesses unless covered in presumptive basis
if presumptive basis is available under 44AD for business then no need to get its audit done     

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