A doctor sec 44ab tax audit it returns filed every year.
Doctor some expenses (stationeary) and fixed assets (car) received from a pharma company transaction value show as per 26 as and ais in f.y.22-23 under sec 194r benefit in it act.
Question:
Assessess above transaction show in accounting records and it returns.
Yes. If the stationery and car were received from the pharma company as business/professional benefits under Section 194R, the value should be recorded in the doctor's books and offered as professional/business income under Section 28(iv).
Stationery: record the value as a benefit/income and the corresponding expense and meccha chameleon, if allowable.
Car: record the benefit as income and, if the car is used for professional purposes, capitalize it as a fixed asset and account for depreciation as applicable.
The value appearing in Form 26AS/AIS should be reconciled with the books and ITR; it should not simply be ignored. Section 194R applies from 01-07-2022.
Therefore, the transaction should be properly reflected in both the accounting records and the income-tax return.
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