Menu
Practical audit
According to the income tax act. The auditor should disallow any expense made in excess of 10,000 in day in cash. But due to many practical reasons the firm/company can not follow this rule and it would be unjust to deny the firm/company such genuine expenses. Do auditors report this actually in tax audit or do they just leave it. Please reply with how you dealt with this from practical experience during an audit.
Replies (1)
You must report cash payments exceeding ₹10,000 (or ₹35,000 for transporters) per day per person in Clause 21(d) of Form 3CD. You should verify these payments against Rule 6DD exemptions; if a payment doesn't qualify for an exemption, it must be reported as an inadmissible/disallowed expense, which will increase the client's taxable income.
Recent Topics :
- Bank balance in ITR-3
- INCLUDING PROFITS FROM REIT / INVIT IN SHARE TRADI
- Tempsens Instruments IPO GMP Allotment Listing dat
- Upload Type - Correction. Not showing in TDS filli
- Partnership tax audit query
- ERROR SHOWING PARTNER REMUNERATION ITR 3 TIME OF V
- Form 146 foreign remittance us citizen
- GST 16(2) notice
- Which GSTR-1 upload error do you hit most often?
- Need advice regarding accounting fees
Related Topics :
CAclubindia
