Loss on Futures and Options
Suresh Kumar (student) (42 Points)
21 July 2017turnover is 20000(negative)
do i come under tax audit as my income is below 8%?
Suresh Kumar (student) (42 Points)
21 July 2017
neeraj gupta
(1138 Points)
Replied 21 July 2017
Only if your total income (including other income heads) is above 2.5L and you want to claim this loss.
Suresh Kumar
(student)
(42 Points)
Replied 21 July 2017
neeraj gupta
(1138 Points)
Replied 21 July 2017
I am afraid, these are the two choices you have. If your Salary is 10L then 44AB(e) applies to you if you do not choose 44AD.
That means either go for audit or declare 8% of 20000.
If you have done the money transfer digitally then 6% of 20000.
Refer 44AB:
37[(e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,]
get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed :
38[Provided that this section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD and his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year:]
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