Hi
I have a question- If the taxable income of a partnership is negative i.e loss , is the assessee required to maintain books of accounts/get it audited under tax audit to comply with presumptive tax provisions?
The relevant section is copied below
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business is lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section.
My view is that since the total income ( loss in this case) does not exceed maximum amount not chargeable to tax, there is no need to obtain tax audit certificate.
The turnover for the buisiness is just Rs 3.5 Lacs. loss after working partner remuneration of Rs 1.5 lacs is Rs (85000)
Views on this much appreciated
CAclubindia
