Comment on Taxation for Traders - Introduction

Yes Rajesh,

You will have file your income tax returns no matter if it is profit or loss. The benefit you get by filing even when you have made a loss is that you can carry forward the loss for next 8 years. So this 30k you have made a loss this year and if next year you make 30k profit, you can set it off and you would not need to pay taxes next year.

Also, auditing would be required because your profits is less than 8% of the turnover as per section 44AD, introduced recently. Do read the other blogs in this section.

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