an individual having turnover 2.5 lacs and business loss 1.4 lacs and salary income 5 lacs...
business newly started in 2018 September.
his total income for the year 5 lacs as business loss not set off against salary income.
is he liable to maintain books or liable to audit as he declares income less than 8/6% and his income exceeds basic limit.
he is not opting for 44ad section in this year. pls clarify Urgently
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Sec 44ad and 44ab
Replies (4)
Tax Audit not applicable... File ITR under sec 44AA...
Thank you for your reply
Under 44AA
In the case of individual --
(ii) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed two lakh fifty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed twenty five lakhs rupees, during such previous year;
then it's required to maintain prescribed books of accounts.
Here there is a loss of Rs. 1.40 lakh and Turnover 2.5 lakh
Though not required but it's advisable to maintain books of accounts as it will facilitate you to claim set off of business loss.
You do not have to worry for audit. it's not applicable.
In the case of individual --
(ii) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed two lakh fifty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed twenty five lakhs rupees, during such previous year;
then it's required to maintain prescribed books of accounts.
Here there is a loss of Rs. 1.40 lakh and Turnover 2.5 lakh
Though not required but it's advisable to maintain books of accounts as it will facilitate you to claim set off of business loss.
You do not have to worry for audit. it's not applicable.
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