Professional Income mingle with Business Income

[RUTHRAPPAN RAJA]

One of my client is a Doctor doing his professional and professional receipt are ₹ 9. lac and also doing another business of ePublishing work (contract) and receipts are ₹ 22 lac. Profeesional Income TDS deducted u/s. 194-J and Contract business TDS deducted u/s.194-C. In the epublishing work covered in Service Tax. My issue in the above situation, assessee come under Sec.44AB or not. Pls guide me

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

Tax audit under Section 44AB is applicable for business if the business income exceeds Re.1 crore and for the professional income the limit is ₹ 25 lakhs. In your case in my opinion Section 44AB will not apply.

AI Summary

Tax audit applicability under section 44AB depends on separate business and professional turnover thresholds; here thresholds not met. Whether a taxpayer carrying on both a profession and a business is liable to a tax audit depends on separate turnover/receipt thresholds for business and professional activities; with professional receipts of Rs. 9 lakh and business receipts of Rs. 22 lakh, and given the applicable thresholds, the respondent concludes the tax audit provision does not apply.