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44ad

Neha (Article) (50 Points)

04 October 2014

A proprietor having medical store is under tax audit u/s 44AD. The same person have HUF in which it receives rental income from Bank branch for letting house to Bank. Is this income from rent to be added to income from business for tax audit purpose. Plz suggest.

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6 Replies

Aditi Dosi (CA Final Student) (105 Points)
Replied 04 October 2014

No, rental income from house property will come under head " Income frm HP" and it will be taxable in the hands of HUF & not in the hand of individual

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Neha (Article) (50 Points)
Replied 04 October 2014

So, is this income added to business income of assessee from medical store for tax audit u/s 44ad.

Aditi Dosi (CA Final Student) (105 Points)
Replied 04 October 2014

No it should not be added in business of medical but it should be added in Income of HUF

Dixit (CA Final) (2405 Points)
Replied 04 October 2014

Agree with Aditi

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 05 October 2014

Agree with Aditi,Well explained,,..Income from letting out of property whether for commercial or residential purpose will come under "Income from House property" So, does not attracts Sec 44AD.

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kanh singh (CA Article) (121 Points)
Replied 05 October 2014

Rental income is not added in the business income. Because it is taxable in the hand of HUF. and HUF and Individual both are different as par Income Tax Act. It can be added only if proprietor of medical store is HUF not individual.

And I think you are talking about section 44AB clause (d) means turnover is less than 100 lac and profit is also less than 8% of turnover. As per section 44AD, there is no need of tax audit, assessee can file his return by presuming his income 8% of turnover if total turnover is less than 100 lac.

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