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Business Loss Tax audit compulsory or not?
One of my client has incurred actual business loss and his turnover is less than one crore, is it compulsory for him to do tax audit for claiming loss or can he go with the loss without doing tax audit?
Replies (3)
Quick Summary
Audit is compulsory u/s 44AD if the Net Profit is less than 8%.
Since in your case, N.P. is -ve I suppose Audit is compulsory.
Since in your case, N.P. is -ve I suppose Audit is compulsory.
But as per Section 44AB, it is applicable above Rs. 1 crore and also his cash receipts and payments are less than 5%. In P. Y. he hasn't opted for 44AD
Audit is not compulsory if Turnover is less than 1 Crore. If the Net profit is less than 6/8℅ & assessee opt for Sec.44AD in his R.O.I, then in that case his accounts are required to be audited u/s 44AB.
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