All about 44ad

This query is : Resolved

Mahavir Shah (Querist)
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09 July 2012 A sole proprietor is having 3 businesss :
Business A : Turnover 15lac
Business B : Turnover 10lac
Busoness C : Turnover 20lac
all of the above are eligible businesses.
now whether he has to show profit 8% on aggregate turnover i.e on 45lacs or individually he has to show profit @ 8%? suppose in one business he want to show less than 8% profit but in aggregate it will be 8% on 45lacs , so whether he has to conduct audit ?

srinivas reddy

srinivas reddy (Expert)
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09 July 2012 take aggrigate

CA Rahul Gupta

CA Rahul Gupta (Expert)
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09 July 2012 Limit of sec 44AD shall be considered for the multiple business as a whole.i.e 8% of 45 Lacs.As per your case, you have shown 8% on 45Lacs.you have fulfilled the requirement u/s 44AD so There is no need to get account audited.

Mahavir Shah

Mahavir Shah (Querist)
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09 July 2012 But in that section "business" word has been used so shows only one business?

CA Rahul Gupta

CA Rahul Gupta (Expert)
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10 July 2012 This is the case of multiple business. This situation is practical So my dear, Please consider all business as a whole.If assessee is running multiple eligible
businesses, having different methods of Accounting, turnover of all those businesses shall be determined as per method of accounting regularly employed for respective businesses.
 Further the turnover so determined shall be clubbed to determine whether limit of 60 lakhs gets exceeded.

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