Comment on Notice under Section 139(9)? - Possible reason
commented on
11 Feb 2015, 01:38 PM
Rupak, your turnover is 8019+65687 = around 75000. Your loss is 57k. Since your profit is less than 8% of the turnover, section 44 AD requires you to get the books audited. So you can’t file it as a no account case.
This is a ridiculous rule, and we have taken out a petition on this: https://www.change.org/p/minister-of-finance-exclude-business-of-trading-in-securities-and-derivatives-from-section-44ad
There are two things you can do, either get a tax audit done, or declare 8% of your turnover as profit. So 8% of 75 is around 7000. So you end up paying 30% or Rs 2100 as taxes (since you are in the highest slab). Rs 2100 will still be quite cheap compared to the audit cost. But you will not get the benefit of carry forwarding your losses.