Reply to query u/s 44ad if firm is loss
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 August 2013
Sir,
With due respect I want to ask the learned CA Mr. Paras Bafna in respect to his valuable reply to Query u/s 44 AD, when firm is in loss.
Sir U have mentioned that the firm can not claim the loss unless & until the accounts have not been audited u/s 44AB.
Kindly enlighten me the section and provisions relating to it.
We shall be highly thankful to U.
With due respect I want to ask the learned CA Mr. Paras Bafna in respect to his valuable reply to Query u/s 44 AD, when firm is in loss.
Sir U have mentioned that the firm can not claim the loss unless & until the accounts have not been audited u/s 44AB.
Kindly enlighten me the section and provisions relating to it.
We shall be highly thankful to U.
10 August 2013
A firm can claim loss u/s 44AD WITHOUT getting its accounts audited.
Section 44AD(5) provides that an eligible who claims income less than 8% AND whose TOTAL INCOME EXCEEDS THE MAXIMUM AMOUNT NOT CHARGEABLE TO TAX is required to get his accounts audited.
Maximum amount not chargeable to tax in case of firm is 0 (NIL).
Since there is a loss, the income DOES NOT exceed the maximum amount not chargeable to tax.
Accordingly the firm is NOT required to get its accounts audited.
Section 44AD(5) provides that an eligible who claims income less than 8% AND whose TOTAL INCOME EXCEEDS THE MAXIMUM AMOUNT NOT CHARGEABLE TO TAX is required to get his accounts audited.
Maximum amount not chargeable to tax in case of firm is 0 (NIL).
Since there is a loss, the income DOES NOT exceed the maximum amount not chargeable to tax.
Accordingly the firm is NOT required to get its accounts audited.
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