Tax audit applicable?

TAX AUDIT APPLICABILITY SAYS WITH TURNOVER

ASSUMING TURNOVER NOT EXCEEDS 1 CRORE,

TAX AUDIT NOT APPLICABLE EVEN IF THE INTEREST RECEIPT IS 1CRORE

Originally posted by : Rajan Sadani
	A Company has no Operating revenue in current year, but it has interest on FD,Dividend more than limit (say more than 1 crore), Then tax audit is applicable?

As per Clause 5.13 (iv) and (v) of the Guidance Note on Tax Audit issued by ICAI, the following items would not form part of "gross receipts/turnover in business" for purposes of section 44AB.

> Dividends on shares except in the case of an assessee dealing in shares;

> Income by way of interest unless assessable as business income
.
Hence, in your case tax audit is not applicable unless the abovesaid incomes are assessed as business income.

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