Turnover for Tax Audit for A.Y. 2013-14

[SURYAKANT MITHBAVKAR]

We are having two different proprietor concern under one Proprietor. One concern having manufacturing activity and achieved turnover is Rs.82,00,000/- and other concern is having only Rent Income from property Rs. 18,00,000/-.

The above criteria please advice whether we are eligible for tax audit under  Income Tax Act

[sanjeev bajaj]

Whether rent income from property being shown as business income or income under the head Income from house Property.  If shown as business income , then, rent will be counted as turnover and bothe turnover will be merged for the purpose of tax audit as Sec. 44AB refers the person.

[CAGOPALJI AGRAWAL]

It is not the prerogative of the assessee to show rental income as business income or business income as rental income, The facts and circumstances decide it.

[sanjeev bajaj]

Interpretation with respect to rental income whether is is business or house property, is different issue depending upon facts and circumstances.

Here, the question is of turnover of two proprietorship having business or other income being shown under the same chapter or different. Audit depends upon the turnover of business.

AI Summary

Determining Tax Audit Necessity for Proprietorships with Mixed Income under Section 44AB for Assessment Year 2013-14. A query was raised about whether two different proprietorships under a single owner, one with a manufacturing turnover of Rs. 82,00,000 and the other with rental income of Rs. 18,00,000, qualify for a tax audit under the Income Tax Act for the assessment year 2013-14. Responses highlighted that if rental income is classified as business income, it would be combined with the manufacturing turnover for tax audit purposes under Section 44AB. However, the classification of income depends on specific facts and circumstances, not solely on the proprietor's discretion.