Applicability of sec 44ad

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Naresh Mohan Gupta (Querist)
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16 July 2018 I have income from private tuition, bank interest, Capital Gains on equity and speculative business(intraday trading), overall income is negative Turnover is less than 01 crore. Shall I have to get my accounts audited under section 44AD?
Shall i have to file ITR3?

MOHD AFROZ

MOHD AFROZ (Expert)
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17 July 2018 File ITR 3 for the assesment year 2018-19.

Naresh Mohan Gupta

Naresh Mohan Gupta (Querist)
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17 July 2018 What about tax audit , Sir

MOHD AFROZ

MOHD AFROZ (Expert)
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17 July 2018 Tax audit not required.

Naresh Mohan Gupta

Naresh Mohan Gupta (Querist)
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18 July 2018 Thnx. but my CA is saying that either I have to show minimum 6% profit or in case of showing loss tax audit is required. Is it mandatory to show 6% profit. If I show 6% profit then I will not be able to carry forward my intra day losses. One more question, can I give loan to my wife for trading ? If yes what paper formality are to be done to avoid legal complications?

MOHD AFROZ

MOHD AFROZ (Expert)
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18 July 2018 As per Sec 44AD profit calculated on gross receipt, 6% profit taken to account while transaction through bank in case of Cash transaction profit will be 8% of gross receipt.
If you file ITR 3 you can adjust your intra day loss.
You can give loan to your wife. You have to prepare agreement.

Naresh Mohan Gupta

Naresh Mohan Gupta (Querist)
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18 July 2018 My all trading is online . Only tuition income is in cash. If I could understand your point correctly , gross receipt in my case is zero. Since total income is negative, 6% or 8% is still applicable? If 6%/8% profit
is mandatory then how can I carry forward my loss?

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