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Tax return with F&O loss

16 July 2018

client with 17 lac salary income, F&O loss 2 lacs, capital gains 17000, other income 5000. Is it possible to file ITR 3 without tax audit?

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171262 Points)
Replied 16 July 2018

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Gaurav Palta (484 Points)
Replied 16 July 2018

That is what i thought. Thanks sir for clearing my doubts.

rahul chaturvedi (student) (32 Points)
Replied 17 July 2018

Sir open my profile and check my question ....i need your help..i know about your knowledge ..u have given answer to many questions..please solve my this query

Gaurav Palta (484 Points)
Replied 24 August 2018

sir i just want to know where exactly it is mentioned that 44 AB applies in this case. Please provide refrence to particular section.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171262 Points)
Replied 24 August 2018

Read Sec. 44AB(e) alongwith sec. 44AD(4) & (5) ......

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Gaurav Palta (484 Points)
Replied 24 August 2018

But sir i have read the same.Section 44AD(5) was amended by F.Act 2016 and it talks only about assesse who opts out of presumptive tax before 5 years and not about all assesses who incur business loss. The scenario of tax audit in my view is not applicable in above case after 1st April 2017(before this amendment tax audit was applicable in this case). Sir just my view, help me in understanding the same further.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171262 Points)
Replied 24 August 2018

For that check.......

1. Your turnover in F&O for previous year.......

2. Whether sec. 44AD was opted in preceeding years......

Gaurav Palta (484 Points)
Replied 24 August 2018

nothing last year and turnover less than 10 lacs

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171262 Points)
Replied 24 August 2018

Though there are divergent views on the interpretation of the section after amendment (as per finance act 2016), and as such clarification is sought by ICAI direct tax committee from CBDT on the issue........ one such view is that for any business who has not opted sec. 44AD in any preceeding year/s, can declare such loss without tax audit... But I do not accept the same, to be on safer side....

Only one point favouring in this case for non applicability of audit is TO being below 10 lakhs....... thereby sec 44AA is not applicable, and as such sec. 44AB ...

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