Profits of AY2019-20 will be set off against loss of AY18-19 mandatorily.
You cannot claim the exemption and carry forward the loss in this case.
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Hey @Prakhar_Agrawal,
No, the Income Tax Department does not allow to carry forward the loss to future years without setting it off against the income of the current financial year.
Learn more about set off and carry forward of losses here.
Hey @Quicko
I have used your tax audit calculator and it shows me the audit required as per section 44AB.
But If I consider section 44AA that is for maintaining the book of account, I do not fall into the criteria of maintaining a book of account due to lower turnover.
So If I do not have the book of accounts then how will the audit apply to me.
My turnover/profit/receipt for the last 3 years is less than the required limit for Audit. I have intraday losses and turn over for current year too is less than 1 lakh.
Hi @aekanshkansal1,
Quicko follows a conservative approach when determining tax audit applicability u/s 44AB and hence tax audit is recommended whenever the turnover is less than INR 25 Lakhs and has losses. However, if you have never opted for the presumptive taxation scheme and your turnover is less than INR 25 Lakh you can file ITR 3 without tax audit.
So, sir, if someone has more than 5 crore turnover, he only needs to get his books and trades audited by a CA, right? He need not pay any penalty to the taxman, right?
Yes. However, if your don’t file tax audit form within the specified due date, then there is a penalty which is lower of
A] 0.5% of turnover or
B] Rs 1.5Lacs