Turnover of NBFC for tax audit purpose

[Gujrani And Co. Chartered Accountants]

Dear Fellow Professionals
 
A NBFC is having the following income in its Profit & loss account:
 
Sale of shares (held as stock in trade)                               Rs. 22 lacs
Interest on loans given in the ordinary course of business     Rs. 16.5 lacs
Dividend from listed companies on shares held as stock         Rs. 3.25 lacs
 
The query is:
 
Is the company required to get its accounts tax audited u/s 44AB considering the turnover from all sources taken together (as business income) which amounts to Rs. 41.75 lacs.
 
Alternatively:
 
Will there be a difference if the dividend income is NIL, Sale of shares is 22 lacs and interest income is 20 lacs.
 
Please give your valued opinion.
 
With best regards 
 
CA. Vikash Kr. Surana
9831093750

---

Invest your money wisely post Budget Sign up now.

[gk agar]

Dear CA. Vikash Kr. Surana

 

Yes Company is required to get its books of account audited u/s 44AB under both circumstances

 

As the assessee is NBFC company and  main object/business of the company is lending money and further shares are treated as stock in trade.

Hence Interest income and share income should be offered as business income in the ordinary course of business under the head BP.

 

If shares are treated as Investment and charged under the head capital gain than situation may change.

 

Thanks & Regards,
CA Gobind Agarwal
Mobile No: +91-98313 61485

---

From: Gujrani And Co. Chartered Accountants <gujran...@hotmail.com>
To: foru...@googlegroups.com
Sent: Fri, 28 May, 2010 1:36:53 PM
Subject: [PDRUNGTA] Turnover of NBFC for tax audit purpose

--
You received this message because you are subscribed to the forum4ca Google
Groups unit of "e-Serve online".
To post to this group, send email to foru...@googlegroups.com
To unsubscribe from this group, send email to
forum4ca+u...@googlegroups.com
For more options, visit this group at
http://groups.google.co.in/group/forum4ca?hl=en-GB
 
For more visit: www.eserveonline.net

[SARITA]

 

Dear fellow professionals,

 

  As per provisions of Sec. 44AB of The Income Tax Act 1961, if total sales,turnover or gross receipts in business exceeds Rs. 40 lacs in a year,the assessee is liable to get its accounts audited U/S 44AB of The Income Tax Act 1961.

 

Whether a income is taxable or exempt, it is immetarial. 

 

Warm Regards,

Sarita Surana

 

 

---- Original Message -----

From: Gujrani And Co. Chartered Accountants

To: foru...@googlegroups.com

Sent: Friday, May 28, 2010 1:36 PM

Subject: [PDRUNGTA] Turnover of NBFC for tax audit purpose

--