Form ITR-6 - Accounts as per Section 44A.

This query is : Resolved

Guest

Guest (Querist)

18 September 2010 ABC Private Limited is having no profit but a loss of approx. Rs.12,000/- for FYE 31.03.10.

Please clarify the basic query, which I have :

Whether in Form ITR-6, should the company select 'YES' for the following question in the form even it has only loss of Rs.12,000/-.

Are you liable to maintain accounts as per section 44AA?

Thank you and I shall wait for the response.

Guest

Guest (Querist)

21 September 2010 Please see and clarify :

ABC Private Limited is having no profit but a loss of approx. Rs. 12,000/- for FYE 31.03.10.

Please clarify the basic query, which I have :

Whether in Form ITR-6, should the company select 'YES' for the following question in the form even it has only loss of Rs. 12,000/-.

Are you liable to maintain accounts as per section 44AA?

Thank you and I shall wait for the response.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2024 In the context of Form ITR-6 and the query regarding whether a company should select 'YES' for the question "Are you liable to maintain accounts as per section 44AA?" even if it has incurred a loss, here's the clarification:

1. **Maintaining Accounts as per Section 44AA**: Section 44AA of the Income Tax Act, 1961, mandates that every person carrying on a profession or business, including companies, must maintain books of accounts if their income exceeds the prescribed limit. For companies, this requirement is generally applicable irrespective of whether the company has made a profit or incurred a loss.

2. **Selection in Form ITR-6**:
- Yes, the company should select 'YES' for the question "Are you liable to maintain accounts as per section 44AA?" in Form ITR-6.
- This selection indicates that the company is liable to maintain books of accounts as per the provisions of Section 44AA, regardless of whether it has made a profit or incurred a loss.

3. **Impact of Loss**:
- The fact that the company has incurred a loss (in this case, Rs.12,000) does not exempt it from the requirement to maintain books of accounts under Section 44AA.
- Losses are a normal part of business operations, and maintaining proper books of accounts is essential for compliance with tax laws and for accurately reporting financial information.

4. **ITR Filing**:
- Even though the company has incurred a loss, it must still file Form ITR-6 to report its financials and losses to the Income Tax Department.
- The loss incurred will be carried forward for set-off against future profits as per the provisions of the Income Tax Act.

In conclusion, irrespective of the profit or loss for the financial year, ABC Private Limited should select 'YES' for the question regarding maintaining accounts as per Section 44AA in Form ITR-6. This selection aligns with the legal requirement to maintain books of accounts under the Income Tax Act, ensuring compliance with tax regulations.

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