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?
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Tax audit applicable?
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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 | ||
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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? |
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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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