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44AD
An individual has sales of Rs 50 lakhs. He incurrs a loss. Is he liable for tax audit. Assume that he doesn't have any other income.
Replies (17)
yes...... tax audit is compulsory in your case
[(e) carrying on the business shall, if the provisions of sub-section (4) ofsection 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,]
How do you think that subsection 4 of section 44AD is applicable to him?
maximum amount which is not chargeable to tax is applicable in case of individual assessee only
In my opinion tax audit is not applicable. does anyone agree?
ofcourse he is liable, business income must be shown at minimum 8% of sales or else audit is compulsory to be done. i.e. either in 44ad or ada or normal provision too audit is compulsory to be done.
Yes. Tax audit is necessary because 8 of his turnover is in taxable limit. If this amount was below taxable income audit not necessary. That is my opinion.
Sorry read as 8 percent of his turnover is above taxable limit. If it was below taxable limit then tax audit not necessary. My opinion
Yes. I agreed to You Mr. Suresh Pau.,
Not required Tax Audit...
Not required Tax Audit...
No need to tax audit if your profit is less than zero..
An assessee has business and gross receipt of business is upto Rs. 1 Crore (Except presumptive income) during the previous year, assessee will not be liable for tax audit, whether business has suffered loss in the previous year.
If the assessee maintains proper books of account and it shows that he is incurring loss> NO TAX AUDIT
If no books of accounts maintained> TAX AUDIT.
If an assessee doing business or profession if his income is less than 8% of turnover or gross receipts then tax audit is compulsory. While calculating 8% if the income itself is below taxable limit tax audit is not necessary.
If an assessee doing business or profession if his income is less than 8% of turnover or gross receipts then tax audit is compulsory. While calculating 8% if the income itself is below taxable limit tax audit is not necessary.
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