Tax Audit
This query is : Resolved
19 May 2009
In case of Finance Business(giving loans to others) What should be limit for Tax Audit? Is it considered on Loan Given Basis or Interest Received from parties.
19 May 2009
Interest received is the criteria.
Ref:-Tax Audit Manual published by Bombay Chartered Accountant's Society.
Ref:-Tax Audit Manual published by Bombay Chartered Accountant's Society.
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19 May 2009
dear keyur,
interest is the revenue of the financer and not the repayment of loan.
therefore if the interest reciept (including recievable) is more than 40 lacs then the tax audit will be compulsory u/s 44AB.
interest is the revenue of the financer and not the repayment of loan.
therefore if the interest reciept (including recievable) is more than 40 lacs then the tax audit will be compulsory u/s 44AB.
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19 May 2009
The section 44AB is applicable only when the sale / receipts etc. from a business / profession exceed certain minimum monetary limits. The meaning of sales here in this section is revenue from business not the business assets. In case of your query the revenue from the business is interest, hence the when interest income when crosses 40 Lac, provisions of section 44AB shall apply.
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19 May 2009
thnxs for quick reply...
19 May 2009
One more reference to substantiate my answer.
Page 19 of 'Issues On Tax Audit'(June 2000 edition) a publication of ICAI.
Page 19 of 'Issues On Tax Audit'(June 2000 edition) a publication of ICAI.
20 May 2009
But sir some are told me that loans given or taken is the criteria.. what should i do?
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