12 June 2021
My client dealt in Futures and Options and the sales volume was Rs 5 crore. But he only earned losses. Is his accounts to be audited u/s 44 AB? Can the experts throw light on this please
06 July 2021
Tax audit limit for business for AY 2021-22 is Rs.5 crores subject to the condition that aggregate cash receipts and payments towards expenditure has not exceeded 5% of total receipts and total payments respectively. Irrespective of the fact that he has incurred only losses, turnover for the purpose of this section will be determined considering sum of positive and negative differences i.e. absolute profit. If the absolute profit exceeds Rs.5 crores then the client is liable for tax audit u/s 44AB
21 October 2021
Agreed, If your turnover calculated as specified above, is below 5 Cr. no tax audit applicable for AY 2021-22. File ITR 3 & carry forward losses, if not set off.
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