Audit for Fno if I have made loss

Hi all

Do I need to get the audit done for the following details. This is for Financial year 21-22

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@Quicko

Opted for 44AD in last 5 years then YES,
else NO ( given you don’t exceed a turnover of 10cr in next 3 months).

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You you have to declare 6 percent of your turnover as profit. Otherwise audit and carry forward loss. Assuming you have other income audit looks beneficial to you.

Not required just now read that the slab has been increase to 5 cr for fy 21-22

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Ok cool. I have started with itr 3 this year and luckily haven’t opted yes for it. I don’t have to go for an audit. Thanks for the reply.

So for AY 22-23 the limit is anyways increased to 10cr and this year it is 5 cr.

I’m a noob when it comes to taxes. Appreciate the reply.

What do you mean by declare profit. I have made losses :grimacing:

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Someone please guide…I am also having this query…
I have fno loss in the last fy…
Do I need audit?
Thank you

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I just read the entire module on taxation.

Kindly check if your turnover crosses above 5 cr. If not you can chill.

The earlier limit was 1 cr which has been increased to 5,10 crs for the ay 21-22 n 22-23 respectively.

Also there is a catch on amount spent via cash should not exceed 5% Of turnover. Lot of CA people will loot in name of audit.

@Hardeep

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I really wish you had understood what you read. And since you have generalised CAs to be the ones who loot people I shall stay away from clearing your doubt.

Thank you @Praveen_P_Bommanagi for your reply bro

@Jason_Castelino Sir…I hope he didn’t mean to generalize it to everyone…
Kindly guide, if possible sir ji…
Will appreciate your help.
Thanks and regards

Yes I read the complete section for slab u/s 44 and it’s implications and limit for audit. When to go for audit and when to not.

People are just lazy not reading including me. I also read the section for turnover calculation from the ICAI for derivative segments.

Anyway thanks for the reply.

Just read the module from varsity zerodha. It’s clearly explained the audit requirements. It is for more than 5 cr turnover.

Refer my above screenshot it says 1.52cr for options.

Again this is for next ay which means the limit has been increased to 10Cr

So chill no need of audit.

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Also no disrespect to CA’s

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It only applies to those who have opted for 44AD in previous years, for people who have not opted for 44AD for them 44AA and 44AB is valid.

Did you opted for 44AD in previous year?
what is your turnover ?

I haven’t opted for the 44AD This year as my turnover does not exceed even 1Cr.

But my taxable income is more than 2.5lakhs. so I want to know will I have to get an audit done. Lots of confusion between subsection. As my turnover falls between 1-2cr.

Require some expert help here. This for the next year FYI

@Quicko can you pls help

@anon8677175

Irrespective of turnover if your profits are less than 6 percent of turnover, then you will have either show profits at 6 percent or get the books audited.

So if you have turnover of 1lakh you have to either show atleast Rs.6000 as profit or get books audited.

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It can be setoff or carry forwarded to next year it helps you to reduce tax burden .

Yes need info on audit.