Received this notice by my friend
"Assessee has claimed loss under the head profit and gains of business or profession, however he has to fill Balance sheet and Profit and Loss account. Incase assessees falls under section 44AD/44AE/44ADA, assessee also has to get his books of account audited if the income offered is less than the prescribed limits as per the provisions of the Income Tax Act."
My query as follows:
If the person is not having the receipts and profits as specified in Sec 44AA,then such person need not not maintain books of accounts. Even the person didn't opted for presumptive taxation. Then why he has to fill balance sheet and profit and loss ac in income tax return? Is there any specific provision like that?
*He is having only loss and no other incomes. Turnover is also less than the specified limits u/s 44AA.He is not a professional also.
CAclubindia
