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critieria for tax audit

Aashish R (Chartered Accountant) (76 Points)

27 October 2007

If a person carrying on finance business what is the critieria for deciding whether tax audit is applicable or not.

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5 Replies

Amit Jain (Chartered Accountant) (36 Points)
Replied 27 October 2007

chek about ur interest income recd. do not consider on the basis of loans given

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SURESH KABRA (chartered accountants) (121 Points)
Replied 27 October 2007

as per my opinion, check turnover of the business and the defination of turnover shows that the amount financed & instalments received. you are the professional persons, so don't give any opinion which reflect the confusion.

vishal (ca) (70 Points)
Replied 17 November 2007

Hi asshish i am agree with the opinion given byMr. Amit Jain and for the purpose of section 44 AB the interest income recived or accrued on the basis of accouinting [policy follwed by assessee will considered as Turnover and not the loans/ deposit given

ASHISH YADAV (Chartered Accountant) (119 Points)
Replied 17 November 2007

mr. amit is right

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 18 November 2007

In my opinion, total amount of loan recoverable / recovered (as the case may be considering the accounting system) during the year should be treated as tunover for the purpose of section 44AB.