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.