Tax audit under IT Act

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An assessee with profit from F&O trading and losses from photography business is facing a potential tax audit issue. The income claimed is less than 8% of the gross turnover, triggering a warning on the new income tax portal. The user is seeking advice on whether a tax audit report is mandatory or if there's an alternative, with a suggestion to report the portal issue as a grievance.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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28 September 2021 Assessee has profit from F & O Business Rs.1.96 L on turnover of Rs.31L which is more than 6%
Against this loss from his Photography business of Rs.2.88 L is set off. In this business there is no income only expenses are incurred.
the net business loss is Rs.92,000/-
Income from other sources is Rs.1.99L and hence business loss is getting adjusted income from other sources
Since turnover is Rs.31L Tax audit report is not prepared
after validating Return of Income following probable defect is warned - " You have claimed income less than 8% of Gross Turnover and audit information is not filled up, Kindly fill up the audit information since you have claimed income less than 8% of gross turnover"

My question is whether tax audit report is compulsory or is there any other way ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 September 2021 Tax audit report is not compulsory. Fill audit information in ITR as not applicable.

MAKARAND DAMLE

MAKARAND DAMLE (Querist)
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29 September 2021 You have claimed income less than 8% of Gross Turnover and audit information is not filled up Kindly fill up the audit information since you have claimed income less than 8% of Gross Turnover
ABOVE POSSIBLE DEFECT IS SHOWN AFTER VALIDATION WHEN I GO TO VERIFICATION
WHAT TO DO ?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 September 2021 New income tax portal problem. Report it under grivences.

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