one of my client have turnover of rs. 175000/- by deducting all expenses it is come loss of rs. 80000/- it is allowed u/s 44ad????
CHIRAG DEEPAK GANATRA (CA FINAL) (1054 Points)
09 March 2013one of my client have turnover of rs. 175000/- by deducting all expenses it is come loss of rs. 80000/- it is allowed u/s 44ad????
shikhar
(LEARNER )
(1394 Points)
Replied 09 March 2013
friend......
NO it is not allowed............
if u r filling return under sec 44ad...then u hv to show minimum 8% of profit.......................in your case u should not file return u/s 44ad...because there is loss.(YOU SHOULD FILE ITR4).....
if your turn over is below 60 lakh and net profit from business in below the limit 2lakh.......then there is noo need too go for audit..
CA Suraj Lakhotia
(IndigoLearn)
(4898 Points)
Replied 12 March 2013
Agree with application of 44AD. However the books are to audited
" if his income exceeds the maximum amount which is not chargeable to income-tax in any previous year"
Thus if total income exceeds basic exemption limit in any previous year and assessee declares less than presumptive income, books of accounts will be audited.
CAclubindia
