44 AD 2 business

In cases where the assessee carries on more than one business activity, the results of all business activities should be clubbed together. In other words, the aggregate sales, turnover and/or gross receipts of all businesses carried on by an assessee would be taken into consideration in determining whether the limit of Rs.2 Crore has been exceeded or not.
In your case aggregate turnover of both business is below 2 core, You are eligible to file ITR 4 u/s 44ad

Sunil Sir,
nature of business would be selected for both?

Originally posted by : Ch. Sai Sudha Mohan
	Mr. A is having two businesses. one a wine shop and the other is a construction business. the turnover of each business is 1 crore 50 lakh can he file return under section 44 ad

If You have Two business and Each T/O 1.50 cr then Tax Audit Applicable...

Originally posted by : Ashish Khillan
	Sunil Sir, nature of business would be selected for both?

Yes May be...

Arey bhai.. Income tax is based on PAN so in this case u can't file under 44AD

Mr. A is having one businesses a wine shop & income form slary. the turnover of Wine business is 50 Lakh can he file return under section 44 ad as a prusmptive ITR4

Originally posted by : Harish Thakur
	Mr. A is having one business a wine shop & income from salary. the turnover of the Wine business is 50 Lakh can he file a return under section 44 ad as a presumptive ITR4

Yes, he is eligible for 44AD.

Since income from both the businesses exceed the limit of Rs.2 crores (in your case Rs.3 crores), 44AD provisions are not applicable.

can u plz explain in detail!!!!

Applicability of 44AD

#1. Presumptive taxation scheme under section 44AD is applicable to all small taxpayer engaged in any business but not in the business of plying, hiring or leasing of goods carriages.

#2. This scheme is not applicable to any person carrying out agency business as well as any person earning income from commission and brokerage business.

#3. Only following persons can opt for this scheme: a) Resident Individual b) Resident Hindu Undivided Family and c) Resident Partnership Firm (not LLP).

#4. This section does not apply to a person providing professional services (covered in section 44ADA)

#5. A person whose total turnover or gross receipts exceeds ₹ 2 Crore cannot adopt presumptive taxation scheme under section 44AD. If turnover exceeds ₹ 2 Crore, then income will be computed under normal provisions of the act (i.e. Revenue – Expenses) and accounts will have to be audited under section 44AB.

#6. If a taxpayer has claimed deductions under section 10A/10AA/10B/10BA or under sections 80HH to 80RRB during the year, then he cannot adopt this scheme.

The manner of Computation of income under section 44AD

Under this presumptive scheme, income will be presumed to be 8% of the total turnover or gross receipts of the business during the year. Income Tax will be paid on this income. (All the expenses, which are incurred for the business, shall be deemed to have been already claimed).

Further, in order to promote the acceptance of digital transactions, an amendment has been made by the Finance Act, 2017 w.e.f. 01-04-2017. It provides that, in respect of turnover / gross receipts that are received through digital mode i.e. cheque, bank draft, NEFT, RTGS, IMPS, Debit/Credit Cards, income will be computed at the rate of 6% of the total turnover or gross receipts of the business during the year.

Therefore, for all payments received electronically, profits will be presumed to be 6% of such payments and for all other payments, 8% of such payments.