Applicability of 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

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?

Hari Beldona

Hari Beldona (Expert)
Follow

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.

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