Future and Option business and cloth business
This query is : Resolved
22 June 2023
If a person has 2 business 1st cloth business in which he avail 44AD his Turnover is less than 2 crore i.e 10 lakh and Profit is more than 8% i.e 1.2 lakh and another business is of F&O in which his turnover is 30 Lakhs and having loss of 3 Lakhs and he maintain book of account in case of F&O business did audit applicable?
22 June 2023
No. Tax audit based on turnover not applicable.
22 June 2023
Aggregate turnover is 40 lakhs, so tax audit not applicable u/s. 44AB(a) IT act.
26 June 2023
sir i am showing profit in cloth business but loss in F&O business however my total Turnover is 40 lakhs and has aggregate loss is 180000 ( 3 lakh loss-1.2 lakh profit) which is less than 8% profit even it is loss , still audit not applicable
26 June 2023
Had you opted for presumptive assessment u/s. 44AD IT act, in any preceding FIVE years, for any of these business?
26 June 2023
yes i opt 44AD last year for cloth business that time F&O did not commence
26 June 2023
In that case you need to declare minimum 6/8% profit in aggregate otherwise tax audit will apply u/s. 44AB(e) of IT act.
26 June 2023
did separate business not consider? we showing profit in cloth business in which we opt 44AD and showing loss in F&O business and mainting book of account for F&O business, in F&O did 44AB(a) not aplicable?
26 June 2023
No. Separation is not allowed as per rule, though practically it may be possible.
26 June 2023
Unless you declare 2.4L profit in F&O and 6/8% profit in cloth business, i.e around 3.20 lakhs in aggregate (no loss c/f of F&O), tax audit gets attracted.
26 June 2023
You are welcome.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- Defective Return - Tds on advance
- TCS ON SOFTWARE SALES
- Not a CA , can we prepare balance sheet
- Income Type for interest from government bonds
- Accounting treatment for Fixed Assets
- Is correct entry for FDs
- Interest on public Provident Fund
- TDS - Form 26QB - Installment - Final payment Query
- ITR 6 Schedule CFL and UD Issues
- Gstr 9 2023-24
- GSTR-9 HSN Summary and Credit Note without item
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
