Audit u/s 44ab of income tax act for loss in f & o transacti
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2013
My turnover in F & O is around 10 Lakhs & i have incurred loss of about 2 lakhs during FY 2012-13 AY 2013-14. To carry forward loss, will audit u/s 44AB will be required.
Also whether provisions of section 44AD will apply if accounts are not audited(i.e minimum profit of 8% of turnover/gross receipts)
Also whether provisions of section 44AD will apply if accounts are not audited(i.e minimum profit of 8% of turnover/gross receipts)
20 July 2013
in case of assessee having business then the limit for tax audit is Rs 1 crore from AY13-14 for gross turnover or gross reciept.
even if net result is loss but if gross turnover or income exceeds 1 cr then tax audit is applicable.
even if net result is loss but if gross turnover or income exceeds 1 cr then tax audit is applicable.
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 July 2013
So no audit is required under Sec 44AB or any other Section of IT Act to carry forward f&o Loss if turnover is less than Rs 1 crore ????
14 August 2013
As per Section 44AD(5) an assessee who claims income less than 8% of turnover AND whose TOTAL INCOME EXCEEDS the MAXIMUM AMOUNT NOT CHARGEABLE to tax is required to get his accounts audited. In case of loss, the total income DOES NOT EXCEED the maximum amount not chargeable to tax. Accordingly audit is NOT required to carry forward loss.
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