Assessee has a loss from Commission Business of Rs. 30000. He has other income of Rs. 600000/-. Section 44AD does not apply to them due to commission income. While filing the return, software prompts that tax audit is required as per section 44AD. My question is does the assessee need to show income @ 8% or can he file the return with a loss without getting books of accounts audited. If he can file the return with a loss , what should be the nature of business to be disclosed in ITR
Hi,
44AD is not applicable in your case. I hope in the past years you have not chosen the section 44AD. If that's correct, audit is not applicable in your case.
You can file return with loss.
Need to check the file, why the software is not allowing to do so.
Please clarify whether the income of Rs. 600000 is from business. In case yes, then you can set off the loss against this income.
In that case what should be my nature of business in ITR.
Dear Sir,
You mentioned loss of Rs.30,000 from commission business. What is the Gross receipts from commission business and also what is the nature of other income?
Thanks
ITR 4
In future you will receive a notice from the department for defective notice. I think you should use ITR-3, show commission loss as normal loss and pay tax on the other income after set off of loss.
You can use business code 09005.
Hi
You can show the loss from business by filing a normal return showing the balance sheet and profit and loss statement. The return is not to be filed under 44AD.
There shall be no requirement of audit.
Sorry,
The code is 0301- Commission agents
The business code applicable to you would be 09005.
Hope this clarifies.
Hi,
You can file a normal return without the requirement of getting your books audited.
Regards,
Nikhil
You can use the below code to file your return.
General commission agents, commodity brokers and auctioneers 09005
Hope that helps.
Regards,
Nikhil
In your case 44AD not apply as commission income so file ITR3 if t/o is < 1 crore than no audit req under 44AB but req of books depends on application of 44AA
Hi,
Section 44AD does not apply on you, you can file ITR 3. If your turnover is less than Rs. 1 Crore, then there is no need to get your books audited.
Nature of Business code is 09005.
Hi
You can show loss ,file normal return,not presumptive.Use ITR 3 for the same..
Tax audit is required if turnover cross threshold of 1 crore .So not required in your case.
Code in ITR can be 09005.
Hope it helps
Dear Sir,
Hope you are doing well !
Section 44AD is not applicable in your case.
You can file ITR 3. There is no requirement of audit.
Audit is compulsory for a taxpayer carrying on a business if the gross receipts or turnover of such business exceeds Rs 1 crore.
Thanks & Regards,
Payal Chhajed
WHOLESALE AND RETAIL TRADE- Sub Sector-General commission agents, commodity brokers and auctioneers.
The business code applicable to you would be 09005.
Thanks & Regards,
Payal Chhajed