142 Points
Joined May 2017
is tax audit compulsory in case of f&o lossess ?
student
137 Points
Joined July 2016
if turnover exceed the specified limit. then it is compulsory to get tax audit done.
142 Points
Joined May 2017
thnkyou ma'am. yes, turnover is more than 1 cr and there is loss of about 12 lakhs. this is a case of A.Y. 2016-17 but i had neither kept any books of account nor get audit done. it is sorely due to ignorance of laws. As time is already gone and my case is selected for scrutiny, kindly advice me the right way out. tax department is saying i'm liable to pay penalty of total Rs. 1,75,000/- (1,50,000 for not get audit done n 25,000 for not keeping books of account). please advice me.
Thanking you anticipation !
student
137 Points
Joined July 2016
claculation of turnover in caee of F&O is done differently.
we have to add the loss and profit for turnover calculation. if that is exceeding 1 cr, then you are liable for penalty
142 Points
Joined May 2017
yes ma'am, i know how to calculate total turnover and it is much more than 1 cr. which types of books of account i was supposed to maintain. one more thing, if this year's my turnover is below 1 cr and there is again loss then also audit and keeping books of account are required.
student
137 Points
Joined July 2016
if turnover is exceeding then tax audit is required so you are liable for penalty.
books of accounts would be general books of account.
like global reports, contract notes, accounting books.
if turnover is below 1 cr, and there is a loss then also you are liable for tax audit. if you don't want the tax audit done, then you can show directly 8% or 6% of turnover as profit.
142 Points
Joined May 2017
ok thankyou so much ma'am or your timely support.
Best wishes
Job
126 Points
Joined November 2014
Adding to above, if books of accounts are not maintained then u/s 271A shall be levied(25000) and Not 271B(150,000).
142 Points
Joined May 2017
ma'am sec 44 AD (5)states that if your income is below the taxable limit then the assessee is not required to get audited. in my case it is loss so it is below than taxable limit. please explain it.
student
137 Points
Joined July 2016
if your total income is below taxable limit, then u r not required to get tax audit done.
142 Points
Joined May 2017
yes ma'am it is in negative. ma'am 44AD (5) is based on 44AD(4). and if we read 44AD(5) w.r.s. 44 AD(4) we get that if any assessee's income is less than taxable limit and if in any preceding 4 yrs. he had filed his return as per 44 AD(1) then only he did not require to maintain any books of account n get audit done. please explain it ma'am. is it right or department is playing with me