Audit Compulsory

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This discussion clarifies whether a partnership firm trading in F&O, stocks, and mutual funds can file its Income Tax Return (ITR) without a tax audit, even if it shows a loss. The advice given is that it's possible to file ITR5 without an audit and carry forward losses, provided certain conditions under Section 44AD(4) were not met in previous financial years. This allows for reporting a loss even if expenses exceed a small trading profit.

Swastik Upadhyay

Swastik Upadhyay (Querist)
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30 December 2021 Dear Sir,
I've a partnership firm which only deals in trading in F&O,Stocks, Mutual Fund. and say by year end I have profit in it but very less amount say 1 lac.
But my expense are also there like internet bill, travelling etc which exceeds more than 1 lac say its 1.50lac.
Can I file ITR without audit showing loss if my trading turnover is less than 5 cr?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 December 2021 Yes, provided sec. 44AD(4) not attracted earlier.....

Swastik Upadhyay

Swastik Upadhyay (Querist)
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30 December 2021 not attracted earlier.....

Sir DID not get this point
In last FY also I had shown loss will it not be possible to show loss this year also without audit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 December 2021 Yes, you can file ITR5 without tax audit, & carry forward losses.

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Swastik Upadhyay

Swastik Upadhyay (Querist)
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30 December 2021 thanks very much sir

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 December 2021 Most Welcome ...

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