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

AI Summary

Turnover for tax audit: rental receipts count only if characterised as business income, then aggregated for audit threshold.
Inclusion of rental receipts in turnover for tax audit depends on whether those receipts are characterised as business income; if so, they must be aggregated with other business receipts of the same person for applying the tax audit threshold, and classification is determined by facts and circumstances rather than taxpayer label.