Transactions with Foreign Banks/Foreign branches of Indian banks The applicability of any Double Taxation Avoidance Agreement is to be taken into account for the purpose of computation of tax in […]
Bank Audit - 3. page
Corporate Dividend Tax
Corporate Dividend Tax A holding company receiving dividend from its subsidiary company can reduce the same from dividends declared, distributed or paid by it. For this purpose, a holding company […]
Bad Debts and Provision for Bad and Doubtful Debts
Bad Debts and Provision for Bad and Doubtful Debts Section 36(1)(vii) of the Income-tax Act, 1961 deals with the allowability of bad debts and section 36(1)(viia) deals with the allowability […]
Special Reserve
Special Reserve ; Deduction in respect of a special reserve created and maintained by a banking company – (a) Section 36(1)(viii) provides deduction in respect of any special reserve created […]
Interest on Non-Performing Accounts (NPAs)
Interest on Non-Performing Accounts (NPAs) According to section 43D, read with Rule 6EA of the Income-tax Rules, 1962, the income of a scheduled bank by way of interest in relation […]
Provision for Taxation
Provision for Taxation Provision for taxation relates to income-tax, (including corporate dividend tax). The auditor must ensure compliance with AS 22, “Accounting for Taxes on Income”.
Income-tax
Income-tax Some of the items which have an effect on the liability of a bank for income-tax and therefore, need to be specifically considered by the auditor are discussed […]
Auditors’ Fees and Expenses
Auditors’ Fees and Expenses This item includes the fees paid to the statutory auditors and auditors for professional services rendered and all expenses for performing their duties, even though they […]
Provision for Depreciation
Provision for Depreciation As mentioned earlier, practices differ amongst banks with regard to accounting for fixed assets and provision for depreciation thereon. In case these accounting aspects in respect of […]
Provisions for Certain Employee Costs
Provisions for Certain Employee Costs Provisions for certain employee costs such as bonus/ex-gratia in lieu of bonus, and gratuity, pension and other retirement benefits are usually made at the head […]