Claiming loss in business without preparing books of account

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ayush khandelwal

articled assistant

37 Points Posted on 12 February 2015

Being an investor, I filind my ITR-4.

I do not maintain any books of accounts and filed the ITR with filing "No account case" in Profit and loss with loss of Rs. 30,000.

can i claim the loss in business without preparing books of accounts?

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 19 February 2015

Originally posted by : ayush khandelwal

Being an investor, I filind my ITR-4.

I do not maintain any books of accounts and filed the ITR with filing "No account case" in Profit and loss with loss of Rs. 30,000.

can i claim the loss in business without preparing books of accounts?

If turnover exceeds 10,00,000/- for the past 3 years, the books of accounts are necessary.

DEEPAK KAUSHIK

ARTICLE

58 Points Posted on 10 March 2015

AS PER INCOME TAX ACT a person must show 8% profit on gross turnover if the sale is not more than 1 cr. as per section 44AD . BUT if the turnover is not more than 1 cr. and assesse show profit less than 8 % he must have his books audited by the practising CA. BEFORE 30 SEPTEMBER.

AND if the turnover is not liable to compulsary audit and assessee claims loss in business and timely file his income tax return , generally department accept the same. BUT if the case is selected for scrutiny then department can ask for all books of accounts.