Do I require Audit to carry-forward F&O losses

Question BankCategory: Income TaxDo I require Audit to carry-forward F&O losses
Tamalika dam asked 4 months ago

Iam

1 Answers
Ajay answered 4 months ago

Dear Tamalika,
The requirement of tax audit, to carry forward your F&O losses , depends upon many factors. The situation upto 2015-16 was different and after 2015-16 situation has been changed. For Financial year 2017-18:-
If your turnover is less than Rs. 1 crore and your profit is less than 6%/8% ( or you have incurred loss ) of your turnover for FY 2017-18 then-

  1. If you have filed return for FY 2016-17 under presumptive taxation scheme u/s 44AD, then you are required to go for audit for FY 2017-18 as per requirement of section 44AD(5) and 44AB(e).
  2. If you did not opt for 44AD in FY 2016-17 & 2017-18 then you are not required to go for audit for FY 2017-18, even if your profit is less than limit specified in 44AD i.e. 6%/8%.

The above answer is drived out from analysis of section 44AA, 44AB and 44AD by comparing position upto FY 2015-16 and after 2015-16 by considering amendment brought in by Finance Act 2016.
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