Opinion Of Eminent Legal Luminaries On Controversial Issues

How TO Calculate Limit Of Turnover In A Person Is Carrying Out Business And Profession?

QUERY: Mr. P is Professional Engineer and has following source of income:

• Share of profit from engineering partnership firm Rs. 15,00,000/-

• Remuneration from the said firm Rs. 9,00,000/-

• Share of profit from proprietary concern Rs. 13,00,000/-

Whether Mr. P is required to get his accounts audited u/s. 44AB?
ANSWER: No, as Mr. P’s gross receipts from the profession are less than Rs. 25/- lakhs. As per Guidance Note on Tax Audit under section 44AB of the Income-tax Act, 1961 issued by the Institute of Chartered Accountants of India, share of profit of a partner of a firm falling under section 10(2A) of the Act need not be considered for calculating the gross receipts.
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