12 September 2011
i have been started my business after retirment from services,as on 31/12/2010,and start the business as on 11/1/2011 during the 2.5 month i dont have any profeesional recipts i had file my income tax return showing business loss ( i.e expenses incurred during 2.5 month ^& claiming deprication) and adjust such loss against income from other sources,is it provision 44AD is applicable? tax audit u/s 44AB is mandaotry?
12 September 2011
Your loss from business should not be speculation loss: 1.Assuming that it is not speculation business loss you can adjust against other heads of income except income under the head salary. 2.Section 44AD is a presumptive tax applicable to business of civil construction or supply of labour for civil construction. 3.Presumptive Tax is 8% of the gross receipts. 4.Tax audit u/s 44AB is applicable only when gross sales exceed Rs 60 lacs for the Assessment Year 2011-12.
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