TAX AUDIT IF LOSS

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This discussion clarifies the rules for tax audits under Section 44AB when a business incurs a loss. Generally, no tax audit is required if there's a loss. However, if the turnover exceeds specified limits and the audit falls under clauses (a), (b), or (c) of Section 44AB, the audit becomes mandatory regardless of profit or loss. For audits under clauses (d) and (e), no audit is needed if the income doesn't exceed the tax-free threshold.

Eldhose MV

Eldhose MV (Querist)

12 June 2020 Please provide the details regarding audit under sec 44AB in case of loss

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 June 2020 No tax audit applicable in case of loss.

swasti

swasti (Expert)

13 June 2020 Just for academic purpose Sir, if in such case the turnover has crossed the specified limit, what would be the scenario? Kindly guide.

CA Shrey Tripathi

CA Shrey Tripathi (Expert)

13 June 2020 if Audit is under clause (a), (b) or (c) of section 44AB, then Audit is mandatory regardless of profit/ Loss.. if it is under clause (d) & (e), No Audit if his income does not exceed maximum amount not chargeable to tax

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

14 June 2020 https://cleartax.in/s/tax-audit-section-44ab
https://taxguru.in/income-tax/tax-audit-section-44ab.html
https://www.incometaxindia.gov.in/Acts/Income-tax%20Act,%201961/2016/102120000000058099.htm

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