Whether Tax Audit Required or not.
This query is : Resolved
18 August 2024
Asssessee(Individua) is declaring income u/s 44AD since last many years. During AY-23-24 assessee had Loss from Futures and Options and the return was filed claiming that loss under ITR-3 and Total Income was below 2.5 Lacs. During AY-24-25 he is having profit from FO Trading for an amount of 32 Lacs.
Is Tax Audit required during this year?
Is Tax Audit required during this year?
18 August 2024
Unless turnover exceeds 10 Crs. or profit margin is below 6%.
18 August 2024
Sir are provisions of 44AD(4) not applicable in this case
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18 August 2024
Not applicable, if sec. 44AD was opted for continuous six years before opting out in FY 2022-23; otherwise it may be applicable.
For that reason tax audit may or may not be applicable u/s. 44AB(e) IT act.
For that reason tax audit may or may not be applicable u/s. 44AB(e) IT act.
18 August 2024
But the above condition already breached in AY 23-24 when he had declared a loss. So as per 44AD(4) is he not liable to get the accounts audited and maintain books for next 5 years.
18 August 2024
As you said sec. 44AD was continuously opted earlier, so the condition may not get breached if opted the sec. from FY 2016-17 to FY 2021-22. So, check the liability as per the previously filed ITRs.
18 August 2024
For AY 2017-18-44AD opted
AY 2018-19-44AD opted
AY 2019-20-ITR-1 Filed as no Business Income
AY 2020-21 44AD Opted
AY 2021-22 ITR Not Filed
AY 2022-23 44AD Opted
AY 2023-24 Opted out of 44AD and loss declared in ITR-3.
AY 2018-19-44AD opted
AY 2019-20-ITR-1 Filed as no Business Income
AY 2020-21 44AD Opted
AY 2021-22 ITR Not Filed
AY 2022-23 44AD Opted
AY 2023-24 Opted out of 44AD and loss declared in ITR-3.
18 August 2024
For AY 2017-18-44AD opted
AY 2018-19-44AD opted
AY 2019-20-ITR-1 Filed as no Business Income
AY 2020-21 44AD Opted
AY 2021-22 ITR Not Filed
AY 2022-23 44AD Opted
AY 2023-24 Opted out of 44AD and loss declared in ITR-3.
AY 2018-19-44AD opted
AY 2019-20-ITR-1 Filed as no Business Income
AY 2020-21 44AD Opted
AY 2021-22 ITR Not Filed
AY 2022-23 44AD Opted
AY 2023-24 Opted out of 44AD and loss declared in ITR-3.
18 August 2024
For AY 2021-22 why ITR was not filed?
Was there any business income?
Was there any business income?
18 August 2024
No business income was there only interest income with tds was there but assessee forgot to file the ITR.
18 August 2024
So, as per the data, the assessee has not opted out from presumptive assessment u/s. 44AD till AY 2022-23 i.e remained opted in for past six years, so the condition for sec. 44AD(4) not applicable from AY 2023.24.
As such no audit applicable for AY 2024-25 u/s. 44AB(e) IT act.
As such no audit applicable for AY 2024-25 u/s. 44AB(e) IT act.
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