Section 44ad

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This query is : Resolved

padam jain (Querist)

10 August 2013 THE ASSESEE IS CARRIYING ON TWO BUSINESS. SINCE THE PROFIT OF FIRST BUSINESS DOES NOT EXCEED 8% OF GROSS RECEIPTS OR TURNOVER OR SALES. WHERE AS THE GROSS PROFIT OD SECOND BUSINESS EXCEED 8% OF GROSS RECEIPTS OR SALES OR TURNOVER.THE TURNOVER , SALES OR GEOSS RECEIPTS OF BOTH BUSINESS TAKEN TOGETHER DOES NOT EXCEED SIXTY LAKH RUPEES.WHETHER ASSESS CAN OPT SECTION 44AD FOR ONE BUSINESS AND GET ACCOPUNT AUDITED AND DECLARE 8% OF GROSS RECEIPTS AS INCOME FROM BUSINESS AND PROFESSION IN RESPECT OF SECOND BUSINESS.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 August 2013 In respect of all the businesses, the assessee can ,either-
1. Show Profit @ 8% Turnover or
2. Get Accounts audited and show the real profit.
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There is no option available now as regards - audit of only one business.
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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

21 August 2013 Surprisingly 44AD covers the section 44AB.
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These are funniest provisions in the Income Tax Act.
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Firstly assessee assumes that he is not required to get his accounts audited and thus he doesn't maintain the books properly.
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At the end of the year; when he finds that profits are lesser than presumed by him as well as presumed by the Income-Tax Department (means both are at one and same stage); the CA says him to get the books audited!
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Now one will go back
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then will come forward.
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Better he carry two business in two different names i.e. individuals. So simple to understand.
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