Urgent 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2011 Our firm had a loss in 2009-10 and we carried forward, now in 2010-11 again Loss,44AB is not applicable(turnover is less than 60Lacs).
My question is, to carried forward loss I have to file by 31stJuly, but as per section 44AD profit is below 8% but below the marginal income chargable to Tax i.e. Rs.1/-.Should we go for Audit and file by 30Sept or filed ITR as per last year.

Ravikant

Ravikant (Expert)
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30 July 2011 Only if you opt for section 44AD , audit is required,

File normal ITR 4 and carry forward the loss

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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30 July 2011 If your profit before allowing INTEREST and REMUNERATION to partners is in Positive amount then you have to compulsorily get your accounts audited as 44AD excludes INTEREST and SALARY to partners.

If it is negative even before allowing interest and salary then it is a contentious matter. Then in my view it is still better for you to get them audited as it is more of the safe option.

but wait for more views on the same.

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Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2011 Ravikantji,which means section 44AD is optional.

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2011 Ashwaniji, we have to carry forward loss and file before due date. 31st July or 30th Sept?

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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30 July 2011 If you are getting your accounts audited then due date will be 30th september. Otherwise 31st july.

Ravikant

Ravikant (Expert)
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30 July 2011 section 44AD is optional

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 July 2011 The provision of section 44AD(5) can be interpreted in the following manner-

PART A.
5) " Notwithstanding anything contained in the foregoing provisions of this section, "

FORGET ALL WHICH HAVE BEEN SAID IN THIS SECTION IN THE PROVISIONS OF SS1 TO SS4 OF
THIS SECTION.

PART B
an eligible assessee who claims that his profits and gains from the eligible business as lower than the profits and gains specified in sub-section (1) and
.
IT IS TALKING ABOUT PROFITS LESSER THAN 8%.
IT MEANS PROFIT LESS THAN 8% WILL BE CONSIDERED FOR TAXATION PURPOSE
.

PART C
whose total income exceeds the maximum amount which is not chargeable to income-tax,
AND TAXABLE INCOME IS REQUIRED

PART D
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.

SUCH PERSONS ARE REQUIRED TO GET THEIR BOOKS OF ACCOUNT AUDITED.

IT CAN BE INTERPRETED THAT IN CASES WHERE TOTAL INCOME IS BELOW THE TAXABLE LIMIT, THERE IS NO REQUIREMENT OF AUDIT, EVEN IF THE PROFIT SHOWN ARE LESS THAN THE REQUIRED 8% OF TURNOVER OR GR.
.
YOU HAVE TO FILE YOUR RETURN BEFORE 31ST JULY FOR CLAIMING THE LOSSES OF THE AY 2011-12. IN MY VIEW -AS EXPLAINED ABOVE AUDIT IS NOT REQUIRED.
.
LAST REMARK-

IF YOU FILE RETURN IN TIME AND DO NOT GET ACCOUNTS AUDITED (IN CASE IT WAS REQUIRED)
THEN ALSO YOUR CLAIM FOR LOSSES WILL BE ALLOWED. TIMELY RETURN FILING IS MUST.

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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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30 July 2011 Truly said by Mr. Bafna -

YOU HAVE TO FILE YOUR RETURN BEFORE 31ST JULY FOR CLAIMING THE LOSSES OF THE AY 2011-12. IN MY VIEW -AS EXPLAINED ABOVE AUDIT IS NOT REQUIRED.
.
LAST REMARK-

IF YOU FILE RETURN IN TIME AND DO NOT GET ACCOUNTS AUDITED (IN CASE IT WAS REQUIRED)
THEN ALSO YOUR CLAIM FOR LOSSES WILL BE ALLOWED. TIMELY RETURN FILING IS MUST.

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It means you are required to file your Return of Income before 31 07 2011 otherwise you will not be allowed to carry forward loss for A.Y.2011-12.

.

Hurry UP and go for filing immediately. Still one day has left to e-file the return.