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Applicability of 44ad in case of loss of a firm

Tax queries 999 views 1 replies

PUNEET OBEROI

CHARTERED ACCOUNTANT

100 Points Joined February 2010

Dear Colleagues,

My query is related to a partnership firm engaged in the business of investments in the stock market. The firm has a business loss of around 2L and has a turnover of delivery based transactions of 30 Lacs and F&O total of Profit/loss of Rs. 17 Lacs. Kindly advise whether by virtue of 44AD(5) where the tax audit is compulsory in this case even if the amount of income is below maximum amount not chargeable to tax (i.e. zero).

Thanks!

CA. Puneet Oberoi

Replies (1)

C.A SHASHANK GOYAL

Chartered Accountant

362 Points Joined May 2011

Hi , I am of the opinion you need to get the tax audit done because Section 44AD of presumtive taxations is the section that becomes automatically applicable and the assesee has no option to it .So if you have an income below 8% you need to get the tax audit done even if you are straightaway not covered under the provision of section 44AB.

THANX FOR SUCH A QUERY .

PLZ CORRECT ME IF I AM WRONG .