Dear experts,
An assessee has turnover of over 1 crore for one business and less than 10 lakhs for his second business. Can we opt for 44AD for the second business?? If yes, as per provisions, it should be excluded from the calculation of turnover u/s 44AB, but how can it be shown in ITR - 4 as on inclusion of the amount u/s 44AD, it gets reduced from the business income.
Please help.
hello,
The wording of subsec. (1) of S. 44AD is “the total turnover or gross receipts of the assessee in the previous year on account of such business”. It uses the word “SUCH Business”. This means, total turnover of all the eligible businesses taken together.
E.g. if an assessee is carrying on 3 businesses. Their respective turnovers are as below
Business 1 Rs. 60,00,000/-
Business 2 Rs. 35,00,000/-
Business 3 Rs. 20,00,000/-
Total turnover is Rs. 1,15,00,000/-. Thus, S. 44AD will not be applicable to this assessee.
you cant opt for section 44AD for 2nd business.
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