09 August 2013
Sir, With due respect I want to ask the learned CA Mr. Paras Bafna in respect to his valuable reply to Query u/s 44 AD, when firm is in loss. Sir U have mentioned that the firm can not claim the loss unless & until the accounts have not been audited u/s 44AB. Kindly enlighten me the section and provisions relating to it. We shall be highly thankful to U.
10 August 2013
A firm can claim loss u/s 44AD WITHOUT getting its accounts audited.
Section 44AD(5) provides that an eligible who claims income less than 8% AND whose TOTAL INCOME EXCEEDS THE MAXIMUM AMOUNT NOT CHARGEABLE TO TAX is required to get his accounts audited.
Maximum amount not chargeable to tax in case of firm is 0 (NIL).
Since there is a loss, the income DOES NOT exceed the maximum amount not chargeable to tax.
Accordingly the firm is NOT required to get its accounts audited.
CAclubindia
