Comment on Notice under Section 139(9)? - Possible reason
commented on
06 Jul 2014, 01:24 PM
1. Pranay, firstly if you have a salary income, it cannot be adjusted with your business losses (trading losses). Business losses can be adjusted only against business profits, either now or anytime if you declare in the next 8 years.
Your turnover is 25lks and net loss is 4.5lks ( 2.5lks + 2lks in expense, because your net loss is after adding your expenses, you can’t reduce expense from turnover).
Since your profits are less than 8% of your turnover (note that turnover is only used to determine if you need tax audit or not, taxes are paid on profit and not on losses), you will need a tax/book audit( both are the same as required per 44AD).
If you want to avoid the audit, the other option would be to declare presumptive income using ITR 4S, 8% of your turnover( 25lks) that is Rs 2lks as your profit and pay taxes on this Rs 2lks after adding to any other income of yours.
NO need to pay taxes if wife has transferred you shares.