Loss in books of accounts of partnership firm - section 44ad
This query is : Resolved
09 August 2013
I want to know..
Whether the books of accounts are required to be AUDITED u/s 44AB, IF there is a LOSS in the books of accounts of a PARTNERSHIP FIRM ?
Kindly answer in context of Section 44AD.
Whether the books of accounts are required to be AUDITED u/s 44AB, IF there is a LOSS in the books of accounts of a PARTNERSHIP FIRM ?
Kindly answer in context of Section 44AD.
09 August 2013
As per Section 44AD read with Section 44AB if an eligible assessee shows income less than 8% of gross receipts then he is required to get his accounts audited.
Accordingly if an assessee shows loss from business, then he does NOT fulfill the condition of minimum income of 8%.
Accordingly he is required to get his accounts audited.
Accordingly if an assessee shows loss from business, then he does NOT fulfill the condition of minimum income of 8%.
Accordingly he is required to get his accounts audited.
09 August 2013
Section 44AD(5):
"Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1)
AND WHOSE TOTAL INCOME EXCEEDS THE MAXIMUM AMOUNT WHICH IS NOT CHARGEABLE TO INCOME-TAX,
shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB."
"Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1)
AND WHOSE TOTAL INCOME EXCEEDS THE MAXIMUM AMOUNT WHICH IS NOT CHARGEABLE TO INCOME-TAX,
shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB."
09 August 2013
If turnover is less than or equal to Rs.1 crore, no need of audit u/s. 44AB read along with 44AD(5) in the case of a partnership firm having loss.
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09 August 2013
Sorry missed this point. Absolutely correct. No need for audit.
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