Tax Related Urgent


If you have no taxes to pay, then it is not mandatory. But considering that you are carry forwarding 5lks loss, which would mean that you have traded quite a bit, I’d say it is best to get an audit done.


Actually i downloaded ITR3 (XML file)and utility tool and did some experiments over weekend.

One of the finding, if the tax payer chooses “no audit required”, “no books required to be maintained” option, then gross receipt or net income from business can not be negative. The XML form throws up an error message while saving. I feel the xml file can not be uploaded without rectifying the verification errors

ANYBODY HAS FILED WITHOUT RECTIFYING ERRORS. ( I had already filed ITR4). Actually some say they had filed ITR showing business loss without audit. I dont how can they do it if the XML wont accept the data.


Under No books there need to be Positive profit only else it wont be declaring profits. If you fill under regular books of accounts and your income is less than 2.5 lacs other than the trading loss , then you can fill without Audit . When you opt regular books , do fill the Balance sheet & Profit & Loss else again notice for defect will come.


Thanks @TAXIQ.IN That means audit is mandatory if someone wants to carry forward the loss of even small amount.


Audit is mandatory only if prescribed thresholds of turnover is exceeded or if income is less than prescribed % of turnover. However, if total income does not exceed maximum amount not chargeable to tax ie 2.5L, then audit not required.

Pls note - for carrying forward losses, audit is not the criteria.


No only if both conditions are fulfilled. If the turnover crosses threshold limit and business loss with Income more than 2.5 Lacs.


No. U guys r confusing me again.

  1. To carry forward loss, tax return is to he filled on time showing the loss that is being carried forward.
  2. But tax form wont accept business loss (negative net income from business) without an audit whether loss is Rs 1/- or one crore
    Whats going on here?


books of accounts maintained option was selected and details appropriately filled?? or else, try that and check


i have spend quite some time playing with ITR3- XML. According to me there is no way to fill a negative business income either by reporting business loss or higher expenses

If taxpayer want to carry forward loss then audit is must. That’s how ITR3 is designed.

Only thing i have not tried is actually e-file tax without audit (with negative business income) and ITR3-XML verification error. Again my guess is, it wont be possible or IT guys will easily find that out and send a notice


If you have not interest to adjust your loss for the next year…

You Just file ITR 4, show business income 6% of your turnover.

For more details visit
Read section 7.3 – Exploring ITR 4 (4S until 2017)


Trader venk is correct. XML is not being created with errors . This is happening when F&O loss is tried for carry forwarding. This is happening during this AY 2018-19. Last year , I didn’t face this problem.


What a mess.

As per tax laws - Audit is mandatory only when business turnover crosses Rs.40lac or Rs.2Crore (in case of presumptive tax payment)

As per XML- Audit is mandatory even if there is a business loss of Rs.1/-. Turnover does not matter

Long live This govt and tax department.


As Per act , Tax audit is applicable
1)if turn over is greater than 2 cr ( F&O Trading) for business
2) If income is less than 8% of turn over + income is born which are taxable. ( You may be aware that upto 2.5 Lacs , There is no tax).

Now question in loss ( even -1 Rs) , Govt intention is to do tax audit whereas act doesn’t say implicitly about this.


Hi Neha,
I spoke to ClearTax people. They quoted 6.5k as their charge + Auditing charge of about 7k. This is the first time I’m going thro’ all these things. Please suggest if these charges are usual or higher.


Auditing charge (7k) sounds about right. Pretty standard.

It’s hard to say about the preparation & filing fees because that varies based on a lot of factors.


I had myself inquired at cleartax, and it quoted filing charge 6.5k plus audit charge additional. It was strict no for me, since filing does not ideally entail such high costs for say individuals, (obviously not having complex transactions!). Also about tax audit, best is to get in contact with a local trusted CA and entrust him with the work. You will save a lot!


I filed last time through hnrblock including audit, it costed me around 1500 after their corporate discount. Overall I had good experience. Do check them out…


Meet the person through you file , get the knowledge from Varsity and ask accountant to go through the Varsity module for filing IT returns. Filing with local guys will help during IT Scrutiny where your presentation will matter.



solution is there now. use java utility in place of excel utility for itr3, it is successful even if f&o is at loss and it is being carried over to next years also.


i think i tried it with java utility only. I am not sure if they rectified the error. Can you send me the link of java utility download