tax audit for partnership firm in loss

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AMOL RAYKAR (Querist)
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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.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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20 June 2017 Yes you have to as your income is less than 8% of turnover.

Studentsca

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

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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20 June 2017 I also agree with Ms.Rashmi i.e you will be liable for tax audit

Studentsca

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

AMOL RAYKAR

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

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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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

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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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.

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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21 June 2017 Completely agree with Ashwini Kumar Ballodai

AMOL RAYKAR

AMOL RAYKAR (Querist)
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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

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

AMOL RAYKAR

AMOL RAYKAR (Querist)
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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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