Comment on Taxation Simplified

Nithin Kamath commented on 25 Jul 2013, 04:33 AM


Firstly, i’d suggest you to consult a CA before going ahead with this,
Coming to your query,

Do read this blog first, there has been a change in section 44AD which has brought a lot of businesses under its umbrella including trading the markets.

What this says is that if your turnover is less 1crore and your profits less than 8% of the turnover you have to get your books audited. In your case since it is a loss you fall under this category.

51 a is gross turnover which is 1,40,000 in your case
51 b is profits and you cannot mention negative number here, this has to be 8% of the gross turnover atleast.
51 c is combined expenses.

You basically have 2 options now, show profit as 8% of your gross turnover or else have your books audited by a CA as prescribed by 44AD. When you have your books audited by CA, it won’t be a no account case, it will be a normal case. You can show your losses and carry forward this loss to set off against any business profit in the future.

As I mentioned earlier, do consult your CA..

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