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Audit u/s 44AB and set off of losses

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Lila

Job

463 Points Posted on 16 June 2021

Last year I had FnO Loss and to carry forward the same, I got my accounts audited. This year I have a FnO profit and a turnover below 5Cr. I have 2 queries here:

1. Can I set off my last year's loss without getting my accounts audited (as turnover this year is below 5 Cr and a profit)

2. Can I take advantage of section 44AD and declare 6% / 8% of the profit and then adjust the normal loss declared last year.

Pls reply

Replies (3)

Quick Summary

This discussion addresses queries regarding setting off previous year's Futures & Options (FnO) losses against current year's profits when the turnover is below 5 Cr. It explores whether an audit under Section 44AB is necessary for this set-off and if Section 44AD can be utilised to declare profit at a presumptive rate (6% or 8%) while still adjusting prior losses.

Lila

Job

463 Points Posted on 16 June 2021

Last year I had FnO Loss and to carry forward the same, I got my accounts audited. This year I have a FnO profit and a turnover below 5Cr. I have 2 queries here:

1. Can I set off my last year's loss without getting my accounts audited (as turnover this year is below 5 Cr and a profit)

2. Can I take advantage of section 44AD and declare 6% / 8% of the profit and then adjust the normal loss declared last year.

Can someone pls revert.