Sowmya.S.Balan (Paid Assistant) (749 Points)
29 July 2012Dear Sir
in our case a professional having professional income of 11 lakhs carried on futures & dervative business. his turn over from derivative business exceeds 3 crores & incurred a loss of 17 lakh from futures business. whether he is eligible for tax audit or not? His professional income below limit of 15 lakhs . its very urgent please help me
Vidya
(Service with a reputed CA firm)
(75 Points)
Replied 29 July 2012
Hi Soumya,
As per section 44AB of the Income Tax Act, every person whose gross sales, turnover ,receipts from his business or profession exceeds rupees 60 lacs or 15 lacs respectively shall get his books of accounts audited. Here the word is Gross receipts, Turnover & not Income or Professional Income.
The professional in your case is carrying a speculative business. Hence he will have to get his BOA audited as the turnover exceeds 60 lacs.
Further the loss from speculative business can be carried forward for further 4 assessment years to be set off against the profits or gains arising in the furture.
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