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Tax audit

03 September 2013

Dear Experts, In Form 3CD, Clause 26 states that Deduction under Chapter VIA taken has to be given. My query is a sole proprietor pays his LIC premium of Rs. 10000 elegible for deduction u/s 80C. He has only business income. In his tax audit report under clause 26 whether we have to mention this deduction as this is not related to his business. So please tell whther this deduction should be shown in clause 26 or not. Thanks in advance

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6 Replies

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 03 September 2013

Yes, it is to be mentioned ...because tax audit covers assessee in entirety....

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 03 September 2013

Dear Sir,

The requirement under clause 26 relating to the deductions admissible under Chapter VIA will have to be with reference to the items appearing in the books of accounts audited by the tax auditor.

If they are appearing in books, then disclose them otherwise not.

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com

Ashwani Narnoli (.) (1843 Points)
Replied 03 September 2013

Dear Mr. Arora,

My point is the assessee paid LIC premium from the business and it is shown as drawings, then also whether it has to be shown.

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 03 September 2013

Dear Sir,

That's what i am saying... that if the same is appearing in books of accounts (as in your case, through drawings etc..) then they should be disclosed...

one also should not have problem in putting values there, as the same says:-
Details of Deductions, if any, admissible under Chapter VIA

and yes, they are admissible as deduction....