Applicability of sec 44ad

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This query is : Resolved

Naresh Mohan Gupta (Querist)

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)

17 July 2018 File ITR 3 for the assesment year 2018-19.

Naresh Mohan Gupta

Naresh Mohan Gupta (Querist)

17 July 2018 What about tax audit , Sir

MOHD AFROZ

MOHD AFROZ (Expert)

17 July 2018 Tax audit not required.

Naresh Mohan Gupta

Naresh Mohan Gupta (Querist)

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)

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)

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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