A CLIENT IS A HOCKEY PLAYER AND HE RECEIVED  RS 48 LAKH AS PROFESSIONAL INCOME IN F.Y 2013-2014..

HE HAS NOT AUDITED HIS ACCOUNTS AS HIS PROFESSIONAL RECEIPTS IS ABOVE THE 25 LAKHS 

MY QUERY IS WHAT WOULD BE THE PENALTY IN THIS CASE OF NON FILING AUDIT REPORT ..

WHETHER HE CAN CLAIM ANY ENPENSES AGAINST HIS RECEIPTS AND IF YES THEN TELL ME THE TYPE OF EXPENSES HE CAN CLAIM AGAINST THIS PROFESSIONAL RECEIPTS .

Dear Rohin,

The penalty for non-furnishing of Audit Report is levied u/s 271B. And the penalty is 0.5% of Total Receipts or Rs.1,50,000, whichever is less. 

If the same is taxable under the head income from profession u/s 28, then all the expenses which have been incurred to earn that income may be deducted and claimed. E.g.

1) Travelling Exp.
2) Hotel Exp.
3) Telephone Exp. etc 

But in that case, all the expenses have to be proved with documentary evidence.

If you have any questions, Pl post the same.

Kind Regards
TaxReply.com