Notice sent for Tax Audit in case of Loss but Turnover less than 1 Crore

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  1. Karan Batra

    Karan Batra Well-Known Member

    In case of any concern in future, feel free to get in touch with me by tagging me on the forum and I'll try to help you out.
     
  2. Ash V

    Ash V New Member

    Thnx all, for the expert view.
     
  3. V K Khanna

    V K Khanna Active Member

    @Ash V

    I have come across an article written by CA Mandar Joshi on Section 44AD of Income Tax Act 1961 - a worth study. It says

    "Subsection (5) of 44AD contains the most interesting provision in the whole section 44AD. It says that the eligible assessee can claim lower income than what is prescribed u/S 44AD(1). However, the assessee will have to maintain books of accounts as mentioned u/S 44AA and shall have to get those books audited u/S 44 AB.

    In case of loss, also, the assessee needs to get its accounts audited and get the tax audit done because, loss, though negative profit, is chargeable to tax and that is why the assessee carry it forward and take the benefit of it."

    Further details can be be had from the following link:-
    www.LinkedIn.com/pulse/20140801152715-67530475-section-44ad-of-the-income-tax-act-1961-a-worth-study
     
    Last edited: Sep 15, 2015
    ZED likes this.
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