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Auditors' report to I-T should have property dealing details

Auditors will now have to disclose details of transactions exceeding 20,000 in connection with immovable property in reports which they file with the I-T authorities on behalf of their clients.

Under the Income Tax Act, professionals earning gross receipts of more than 50 lakh and companies with a turnover of over one crore are required to get their accounts audited. The turnover limit for companies has been increased to Rs two crore from Assessment year 2018-19.
So far, auditors in their report had to mention details of loans, and repayment exceeding 20,000 in the tax audit report filed along with Income Tax returns. Hence forth, all transactions exceeding 20,000 relating to property will have to be mentioned in a specified format in the report.
The move will increase transparency in financial dealings and help check tax evasion.
As per the notification by the I-T department, auditors will have to furnish details of transactions regarding "each specified sum" exceeding 20,000 from financial year 2016- 17. These would include money paid or received with regard to immovable property.

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