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44AD of income tax and 44AB

17 August 2019

Can partnership file Loss return and no audit because 44AB applicable only if income more than basic exemption Limit
and can 44AD is mandatory to opt if turnover below 1cr.

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3 Replies

Kapadia Pravin (17249 Points)
Replied 17 August 2019

44AD is not mandatory.
44AB is applicable if turnover is more than 1 crore.
You can file loss return before 31st August otherwise loss won't be allowed to be carried forward

Imran khan (17 Points)
Replied 19 August 2019

as per 44AD if declare income less than 6% can I am not liable for audit.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 20 August 2019

1. There is nothing wrong in filing a loss return with respect to a partnership firm.
2. Sec 44AB mandates tax audit if the gross receipts or T.O during the year exceeds Rs. 1 crore or otherwise a person has for presumptive taxation u/s 44AD or sec 44ADA.
3. If you look into sec 44AD, it is an option given to the eligible assessee to opt for such a scheme to avoid the hardship for maintaining books of accounts and other compliance aspects.
4. Sec 44AD is nothing but an optional scheme and assessee have the right to either opt for it or to pay tax under the regular scheme.
5. So in your case, it is not mandatory for you to opt for presumptive taxation scheme u/s 44AD if the T.O is less than Rs. 1 crore.
Please correct me if the above solution has an alternative view.