44AB Tax Audit

Originally posted by : Smit Shah
	suppose there is a newly started XYZ & co. a partnership firm engaged in real estate sector having huge amount of work in progress as it's projects are not completed but has not a single ruppee turnover as building is still not ready whether still it be liable for tax audit.

If the partnership firm has incurred expenses during the financial year, it can claim such expenses and report loss in the Income Tax Return. Applicability of Tax Audit not only depends upon the turnover of business but also on the income of the business. If there is loss, it is advisable to maintain books of accounts and get them audited. The firm can carry forward the loss for 8 years.