19 May 2009
In case of Finance Business(giving loans to others) What should be limit for Tax Audit? Is it considered on Loan Given Basis or Interest Received from parties.
19 May 2009
dear keyur, interest is the revenue of the financer and not the repayment of loan. therefore if the interest reciept (including recievable) is more than 40 lacs then the tax audit will be compulsory u/s 44AB.
19 May 2009
The section 44AB is applicable only when the sale / receipts etc. from a business / profession exceed certain minimum monetary limits. The meaning of sales here in this section is revenue from business not the business assets. In case of your query the revenue from the business is interest, hence the when interest income when crosses 40 Lac, provisions of section 44AB shall apply.
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