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Loss from shares
In case of speculation loss is it mandatory to do tax audit????
Replies (2)
An audit is required if you have a business income and if your business turnover is more than Rs 2 crores (was Rs 1 crore until FY 16/17) for the given financial year. Audit is also required as per section 44AD in cases where turnover is less than Rs.2 Crores but profits are lesser than 8% of the turnover and total income is above minimum exemption limit.
In case of Loss is speculative since profit (Loss in this case) is less than 8% of the turnover, therefore Tax Audit will be applicable u/s 44AB read with section 44AD.
44AD was anended by F.act 2016 and there is no clause now which mandates audit for loss cases as specified above if turnover is below 1 cr. It mandates audit only in case a person has opted for 44AD in previous year and leaves 44AD in current year for showing lower than deemed profits.However for safe side you can get audit done to take benefit of losses always.
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