tax audit for partnership firm in loss


This query is : Open 

(Querist)
20 June 2017 Dear experts, we have registered a partnership firm in August 2016. The firm is in prototype development phase,we have generated no revenue. I have to file ITR for FY 216-17. I want to carry forward the losses from FY 16-17. so my query is it necessary to do tax audit to carry forward losses.

20 June 2017 Yes you have to as your income is less than 8% of turnover.

Studentsca (Expert)
20 June 2017 No need for Tax audit. Just Prepare your accounts I.e computation, fill ITR form and upload on income tax website.

20 June 2017 I also agree with Ms.Rashmi i.e you will be liable for tax audit

Studentsca (Expert)
20 June 2017 Could you please explain why tax audit is required in this case??

AMOL RAYKAR (Querist)
20 June 2017 dear Ashwini Kumar & Rashmi, the income is zero.. could you please explain why tax audit is necessary?

21 June 2017 As per Sec 44AD tax audit to be done if the profit is claimed less than 8% of turnover & income is less than basis exemption limit

21 June 2017 but in partnership firm there is no basic exemption limit then how can his second condition be satisfied ? For the tax audit to be applicable, both the conditions are to be satisfied that Income less than 8% and net income more than minimum amount chargeable to tax.

21 June 2017 Completely agree with Ashwini Kumar Ballodai

AMOL RAYKAR (Querist)
21 June 2017 net income is zero. for firm min amount chargeable to tax is 1 rs. so net income is less than min amount chargeable to tax...

Studentsca (Expert)
21 June 2017 is it compulsory to opt for sec 44AD.?

AMOL RAYKAR (Querist)
21 June 2017 dear Ashwini Kumar & Rashmi, can you please elaborate the case?? bz in this case firm income has not exceeded the maximum amount which is not chargeable to income tax


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