Applicability of sec.44ad and set off of loss

This query is : Resolved

hitesh (Querist)
Follow

20 October 2011 Dear Professional Borthers,
One of my client has nil business turnover since last 2 year ie. during f.y.09-10 & 10-11. Has business income in f.y.08-09 and earlier years. Has incurred expenses on travel, office rent and depreciation for the f.y. 09-10 & 10-11. Whether he can set off the business loss against his rental income and income form interest. Whetehr 44ad will be applicable if yes how? 44 ab audit would be required?
Thanks.
CA Hitesh KC

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
Follow

20 October 2011 1.Yes business loss can be set off against rental income,income from interest.
2.As his turnover is nil sec 44AD,44AB are not applicable.