44AD provisions

Save Share

This query is : Resolved

Quick Summary

Yes, you can claim presumptive income under Section 44AD for one business while using normal provisions for another simultaneously. If you have a derivative loss, it can be set off against your presumptive income. Any remaining loss can be set off against other income heads and carried forward for future years. A tax audit under Section 44AB is generally not compulsory in such cases, provided certain turnover and cash transaction thresholds are met.

Ranjit Shitole

Ranjit Shitole (Querist)
Follow

29 July 2023 Can we take 44AD For one business and normal provisions for other business at same time.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

29 July 2023 Yes, it is allowed.

Ranjit Shitole

Ranjit Shitole (Querist)
Follow

29 July 2023 Then if for one business i already declaring income u/s 44AD and in current year i have a derivative loss can i show earlier business under 44ad and derivative loss under normal provisions and set off and carry forward for future years without tax audit u/s 44AB

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

29 July 2023 The profit from the presumptive assessment will get set off with loss from F&O and if any excess loss it will set of with income from remaining heads as per IT rules. Remaining amount of loss if any, will get carry forward.

Ranjit Shitole

Ranjit Shitole (Querist)
Follow

29 July 2023 Yes but in that case tax audit is compulsory or not

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

29 July 2023 Depends upon aggregate turnover, and percentages of cash transactions.

Ranjit Shitole

Ranjit Shitole (Querist)
Follow

29 July 2023 If 44AD business has profit of 140000 and F&O loss is 465000 and aggregate turnover is 27 lakh in that case total income is nil then audit is compulsory or not for carry forward of lose

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

29 July 2023 What is the turnover of F&O when loss is 4.65L ?
Give segregate values of turn over.
Any other income under CG, IFHP, Salary & OS.

Ranjit Shitole

Ranjit Shitole (Querist)
Follow

30 July 2023 F&O Turnover 2165000, 44AD Mill business Turnover 365000, STCG 135000, other income 21200, no salary and HP income.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

30 July 2023 In that case Tax audit u/s. 44 AB IT act, is not applicable.

Ranjit Shitole

Ranjit Shitole (Querist)
Follow

30 July 2023 Thank you Sir for guidance