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

[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

Posts / Replies

[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.

[CA GOPALJI 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.