18 August 2024
Asssessee(Individua) is declaring income u/s 44AD since last many years. During AY-23-24 assessee had Loss from Futures and Options and the return was filed claiming that loss under ITR-3 and Total Income was below 2.5 Lacs. During AY-24-25 he is having profit from FO Trading for an amount of 32 Lacs. Is Tax Audit required during this year?
18 August 2024
Not applicable, if sec. 44AD was opted for continuous six years before opting out in FY 2022-23; otherwise it may be applicable. For that reason tax audit may or may not be applicable u/s. 44AB(e) IT act.
18 August 2024
But the above condition already breached in AY 23-24 when he had declared a loss. So as per 44AD(4) is he not liable to get the accounts audited and maintain books for next 5 years.
18 August 2024
As you said sec. 44AD was continuously opted earlier, so the condition may not get breached if opted the sec. from FY 2016-17 to FY 2021-22. So, check the liability as per the previously filed ITRs.
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