Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

44AD

Save Share

Join Us Follow Us Add as Source

This query is : Open

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2011 The assessee (individual) a machine shop has c/f business loss of Rs. 10lacs. For FY 2010.11 his turnover is Rs. 12 lacs. If his profit for this year is Rs. 120000/- whether he is liable to get his accounts audited considering his c/f loss u/s 44AD as his returned income will be below 8% of turnover?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

08 July 2011 Computation of Business Income is covered under Part D of Chapter IV. Section 44AD has its limitation to this extent only.
Section 44AD overrides provisions contained in section 28 to Section 43C only.

Set off provisions are covered by chapter VI and Section 44AD does not have any overriding impact on Section 70 to 80.
Hence tax audit is not required in such case.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now