Tax Audit

This query is : Resolved

CA Parag Jani (Querist)
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14 September 2010 I'm an ACA. My uncle is engaged in a trading business which is covered within tax audit ambit. My mother, my grand mother & my father are having balances as Unsecured Loan in this business. Can I perform the attestation function of this buiness? Plz advise.

CA. NIRMAL SINGH

CA. NIRMAL SINGH (Expert)
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14 September 2010 Dear Parag,

As per Section 226(3), (4), (5)
You are not disqualified to do the attestation work.

CA Shiv

CA Shiv (Expert)
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14 September 2010 As far as just attestation is concerned you can do that. Its just as a certificate..

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mohinder kansal

mohinder kansal (Expert)
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14 September 2010 I think u are asking whether u can audit ur uncle's trading firm accounts. there is no prohibition to audit the accounts of uncle under section 44AB. u may disclose ur relation by giving a suitable note in the report.

CA Parag Jani

CA Parag Jani (Querist)
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15 September 2010 The total amount of unsecured loans held by my relatives (i.e. mother, father & grand mother) exceeds 20% of the capital employed in the said business. So I want to make sure if my signing the tax audit report of the same will be as per the guidelines!

CA. NIRMAL SINGH

CA. NIRMAL SINGH (Expert)
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16 September 2010 yes