File ITR-3
This query is : Resolved
10 April 2023
Dear Sir,
Please tell me about Tax Audit, My business is only F&O trading and 100 % digitally.
In Fy 2022-23 Option trading premium received is 79 Lakh and premium buy is 80 Lakh so my net losses is 1 lakh and carry forward loss to next year, so know whether I am liable for tax audit or not ?
If not, can I file ITR-3 file without tax audit without error? Is it applicable In my case 6 % profit of Gross Receipt criteria in my case I have no any income ?
If I file ITR -3 without a tax audit and show error what can I do?
Please know me in detail about it.
Thanks,
Warm Regards,
Can I face a problem at time of ITR 3 file because of loss? Previous year this problem is occurring because of profit is less than 6% of gross receipt then I was go wit audit in fy 21-22
Please tell me about Tax Audit, My business is only F&O trading and 100 % digitally.
In Fy 2022-23 Option trading premium received is 79 Lakh and premium buy is 80 Lakh so my net losses is 1 lakh and carry forward loss to next year, so know whether I am liable for tax audit or not ?
If not, can I file ITR-3 file without tax audit without error? Is it applicable In my case 6 % profit of Gross Receipt criteria in my case I have no any income ?
If I file ITR -3 without a tax audit and show error what can I do?
Please know me in detail about it.
Thanks,
Warm Regards,
Can I face a problem at time of ITR 3 file because of loss? Previous year this problem is occurring because of profit is less than 6% of gross receipt then I was go wit audit in fy 21-22
10 April 2023
You can file ITR 3 with books of accounts maintained. without TAX AUDIT, as the limit for tax audit u/s. 44AB(a) of IT act, for businesses with more than 95% digital transactions, is Rs. 10 Crs.
You can carry forward losses.
You can carry forward losses.
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10 April 2023
Can I face a problem at time of ITR 3 file because of loss? Previous year this problem is occurring because of profit is less than 6% of gross receipt then I was go wit audit in fy 21-22
10 April 2023
As you had already audited books of accounts in preceding year, and if audited u/s. 44AB(e) of IT act, then whatever be the condition this year, you have to continue the audit of books for next FIVE years u/s. 44AB(e) of the act.
10 April 2023
Sir,
I had file ITR-3 from last 10 year and in past never I file under 44AD, so what happen in FY22-23
I had file ITR-3 from last 10 year and in past never I file under 44AD, so what happen in FY22-23
10 April 2023
As you have said you were liable to tax audit in FY 2021-22, due to profit margin less then 6%; the audit would have been u/s. 44AB(e) r.w.s. sec 44AD(4 &5) of IT act.
Read sec. 44AD (5) for its confirmation.
Read sec. 44AD (5) for its confirmation.
10 April 2023
Provisions to be applied if a person does not opt for the presumptive taxation scheme of section 44AD and declares income at a lower rate, i.e., at less than 8%
A person can declare income at lower rate (i.e., at less than 6% or 8%), however, if he does so, and his income exceeds the maximum amount which is not chargeable to tax, then he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited as per section 44AB.
Consequences if a person opts out from the presumptive taxation scheme of section 44AD
If a person opts for presumptive taxation scheme then he is also require to follow the same scheme for next 5 years. If he failed to do so, then presumptive taxation scheme will not be available for him for next 5 years. [For example, an assessee claims to be taxed on presumptive basis under Section 44AD for 2021-22. However, for AY 2022-23, if he did not opt for presumptive taxation Scheme. In this case, he will not be eligible to claim benefit of presumptive taxation scheme for next five AYs, i.e. from AY 2023-24 to 2027-28.]
Further, he is required to keep and maintain books of account and he is also liable for tax audit as per section 44AB from the AY in which he opts out from the presumptive taxation scheme. [If his total income exceeds maximum amount not chargeable to tax]
A person can declare income at lower rate (i.e., at less than 6% or 8%), however, if he does so, and his income exceeds the maximum amount which is not chargeable to tax, then he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited as per section 44AB.
Consequences if a person opts out from the presumptive taxation scheme of section 44AD
If a person opts for presumptive taxation scheme then he is also require to follow the same scheme for next 5 years. If he failed to do so, then presumptive taxation scheme will not be available for him for next 5 years. [For example, an assessee claims to be taxed on presumptive basis under Section 44AD for 2021-22. However, for AY 2022-23, if he did not opt for presumptive taxation Scheme. In this case, he will not be eligible to claim benefit of presumptive taxation scheme for next five AYs, i.e. from AY 2023-24 to 2027-28.]
Further, he is required to keep and maintain books of account and he is also liable for tax audit as per section 44AB from the AY in which he opts out from the presumptive taxation scheme. [If his total income exceeds maximum amount not chargeable to tax]
10 April 2023
sir,I audited in FY 21-22 because of as time of ITR-3 file error due to 6% criteria and in past also i have loss 50k and gross receipt is 83 lk and no other income.
10 April 2023
Check your audit report for FY 2021-22, i.e. AY 2022-23, under which section the audit was carried out?
10 April 2023
8. Indicate the relevant clause of section 44AB under which the audit has been conducted
Sl. No. Relevant clause of section 44AB under which the audit has been conducted
1 Clause 44AB(e)- When provisions of section 44AD(4) are applicable
Sl. No. Relevant clause of section 44AB under which the audit has been conducted
1 Clause 44AB(e)- When provisions of section 44AD(4) are applicable
10 April 2023
So, now it must be clear to you about the reason of mandatory tax audit u/s. 44AB(e) for next FIVE years. (provided you declare less than 6% profit and total income be above taxable limit)
10 April 2023
My total income doesn't exceed 2.5 lk ie not above taxable income.
11 April 2023
Check your aggregate total income, if its below taxable limit, then tax audit u/s. 44AB(e) IT act, will not be mandatory.
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