12 August 2018
My file has gone for audit for ay 2018-19 and i am the proprietor of the firm.I have taken loan from a individual and given to some other person on interest.I have taken lian in my name.My auditor told me that i cannot give loan by taking loan.I have to pay penalty for violation of income tax loan laws. What penalty will I have to pay now, Is it violation of income tax rules that loan cant be given by taking loan. .
12 August 2018
as an auditee you have the right to ask chartered accountant to explain his position in writing along with required backing of law. As I said earlier if the loan is not in cash, there should not be any issue.