Tax Audit Applicable or not?

Tax audit u/s. 44AB not applicable. Yes, loss can be forwarded if ITR filed before due date.

Thanks a Lot for your reply Dhirajlal Rambhia Sir...

You are welcome.             

Tax audit is not applicable on the facts stated. For FY 2024–25, the turnover is below the ₹10 crore threshold available under section 44AB where both cash receipts and cash payments do not exceed 5% of the relevant totals. A ₹4 lakh loss, by itself, does not trigger a tax audit for a trading partnership; the presumptive-tax loss rule for businesses under section 44AD applies only where the firm is eligible for that scheme and has opted for it in the prescribed manner.

The loss can generally be carried forward if the firm files its return within the due date under section 139(1), subject to set-off and other applicable conditions. The firm’s eligibility or prior election under section 44AD should therefore be checked before finalising the return.

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