Can business loss be set off against presumptive income?

In case a person has brought forward losses from the business or profession and in the current assessment year the person files the return of income declaring his income under presumptive scheme specified u/s 44AD or 44ADA or 44AE then he is allowed to set off the brought forward losses from the presumptive income.

Is it mandatory to do tax audit in case of loss?

If Loss occurred and Total Taxable Income is below threshold limit (2.5 lakh for non senior citizen and 3 lakh for senior citizen), No Tax Audit required. If Loss occurred in Business and Total Taxable Income exceeds threshold limit, Tax Audit required.

Is tax audit applicable in case of loss in F&O?

CONCLUSION: It can be concluded that a person who incurred losses in F&O in AY 2021-22 and not opted for a presumptive taxation scheme in any of the last five previous years is not required to get Tax Audit under section 44AB.

Who is not eligible for 44AD?

The following persons are not eligible to opt for the presumptive taxation scheme of Section 44AD: Any firm or person that has made a claim for deductions under Sections 80HH to 80RRB or under Sections 10AA or 10A or 10B or 10BA during an assessment year.

What is presumptive income under section 44AD?

In presumptive taxation under Section 44AD, your net income is considered as 8% of your turnover and you will pay tax on that income. If your receipts are in digital (non-cash) form then only 6% of your receipts is your net income and you will pay tax on that income.

Is Section 44AD applicable to professionals?

Applicability of Section 44AD As Section 44AD specifically mentions the word business, therefore section cannot be applied in case of professionals. Section 44AD only applies in case of Individuals, Partnership & HUF provided they are Resident in India. NRI’s cannot claim the benefit of this scheme.

Is 44AD applicable for speculation business?

06 July 2012 It is no where mention in 44AD that it is not applicable on Speculative business . (iii) a person carrying on any agency business.] (V) whose total turnover or gross receipts in the previous year does not exceed an amount of 44a[45[sixty lakh rupees]].]

What are the exceptions to the rule of set off losses under the same head of income?

Exceptions to an intra-head set off: One cannot adjust the losses of speculative business with the income from any other business or profession. Loss from an activity of owning and maintaining race-horses will be set off only against the profit from an activity of owning and maintaining race-horses.

Can 44AD and 44ADA be claimed together?

As concluded above, a registered professional under Section 44AA, filing ITR under Section 44ADA is not eligible to avail benefits under Section 44AD.

Is tax audit mandatory for private limited company?

Statutory Audit as the name suggests is a compulsory audit for all companies. Every entity which is registered under the Companies Act, as a Private Limited or a Public Limited company has to get its books of accounts audited every year.

Is tax audit mandatory for proprietorship?

Audit of Proprietorship In the matter of a professional proprietorship, an audit needs to be done if the total receipts of the proprietorship exceed the amount of Rs 50 lakh. If a proprietorship is under any presumptive tax scheme, regardless of the annual turnover, an audit is required.