I have salary income nearly 4 lacs and loss from F & O of 25k.
I have filed my ITR 4.
CPC has sent me notice for defective return and saying that I need to do audit u/s 44AD as I have loss income from Business.
I read the said section. Below is some part of the provision.
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.
So, if we read the condition it clearly says total income should exceeds basic exemption limit for audit applicability.
As I have loss, I think Audit is not applicable to me.
yes, my gross total income excess basic exemption limit, but it is due to salary income and not from income from business. Again in the provision word "Total Income" is used and not "Gross Total Income."
So, expert can you please suggest whether Audit is applicable to me.
29 September 2015
section says : TOTAL INCOME.... total income is computed taking into account all heads of income. And in your case, total income is more than 250,000. So? Tax audit is applicable.
Good that the date is being extended to 31/10/2015. Do it and submit the same.
CAclubindia
