Bank Audit - 3. page

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 […]

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 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 ; 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) 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 relates to income-tax, (including corporate dividend tax). The auditor must ensure compliance with AS 22, “Accounting for Taxes on Income”.

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 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 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 such as bonus/ex-gratia in lieu of bonus, and gratuity, pension and other retirement benefits are usually made at the head […]