Tax Audit u/s 44AB 2nd Webinar - 3

An assessee  owns 12% of the voting shares in a closely held company. The company gives the assessee a loan of ₹100,000. The company has  accumulated profits of ₹1,50,000 to cover this loan. Would this loan be considered a dividend under Clause 36A of the Income Tax Act?

• Deemed dividend 1 lakh, No TDS

• Deemed dividend 1 lakh, TDS of Rs.10,000

• Deemed dividend 1 lakh, TDS of Rs.15,000

• Deemed dividend 1.5 lakh, No TDS

Which businesses under Section 44AB need not to file Form No. 61?

• Hotels or restaurants accepting cash payments exceeding Rs. 50,000

• Businesses dealing with foreign travel or currency exceeding Rs. 50,000 (in cash)

• Person raising bill in respect of transactions of sale or purchase of goods or services where value of the transaction exceeds Rs. 2 lakhs per transaction.

• Businesses involved in transactions  listed in Rule 114B (Table, Serial 1-17)

If a cost audit was ordered but not completed by the time of the tax audit report, the tax auditor should-

• State this in  report (3CD)  under Clause 37

• Not state this in their report

• Cost audit not in scope of tax auditor

• Tax auditor will discuss this with management

Under which clause of the tax audit report should interest u/s 201(1A) on TDS deducted but belatedly deposited be reported?

• Clause 34 (a)

• Clause 34 (b)

• Clause 34 (c)

• Clause 36

Under current regulations in India, which of the following consolidated group revenue thresholds triggers the mandatory filing of Country-by-Country (CbC) reports?

• ₹2,500 crore Consolidated Profit

• ₹4,000 crore Consolidated Profit

• ₹5,500 crore Consolidated Revenue

• ₹6,400 crore Consolidated Revenue