14 July 2011
yes, As per provision of Section 44AD, In any case if you show Net Profit below 8% of turnover or gross receipts then Audit is Compulsory under section 44AB of Income Tax Act-1961, so in case of Loss you have to get books of Accounts audited.
14 July 2011
In case of loss, the total income of the assessee may not exceed the taxable limit of say 1.60 lacs, which is a pre-condition prescribed U/s 44AD(5) for tax audit. * Total Income means as defined under the act i.e. income from all sources Less: b/f losses eligible for set off Less: deductions under chapter VIA. * So in case of loss Tax Audit is not required.
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