Audits requirements

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student
239 Points Joined January 2017
can we File 1 business in 44AD and other business as a normal business with maintain full books and show loss in this business. and profit in 1 business in 44AD.
please guide
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On 24 July 2024 at 18:50 Report
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Master in Accounts & high court Advocate
9447 Points Joined December 2011

To file a business under Section 44AD, follow these steps: *Eligibility*: - Business must be a resident individual, HUF, or partnership firm (not a company) - Business must be engaged in eligible professions (e.g., freelancing, consulting, tuition, etc.) - Business must have a turnover of up to ₹2 crores *Documents Required*: - Form ITR-4 (Income Tax Return for Individuals and HUFs) - Form ITR-5 (Income Tax Return for Partnership Firms) - Audited financial statements (not required if turnover is below ₹1 crore) - Proof of business income (e.g., invoices, receipts, bank statements) *Filing Process*: 1. *Compute business income*: Calculate business income as per Section 44AD (8% of gross receipts or turnover) 2. *Fill out Form ITR-4 or ITR-5*: Fill out the relevant ITR form, reporting business income under Section 44AD 3. *Attach required documents*: Attach audited financial statements (if applicable) and proof of business income 4. *Submit the return*: Submit the return electronically through the Income Tax Department's website 5. *Pay tax*: Pay any due tax and interest (if applicable) *Benefits*: - Simplified accounting and auditing requirements - No need to maintain detailed books of accounts - Reduced tax compliance burden *Note*: Consult a chartered accountant or tax advisor to ensure accurate filing and compliance with specific tax laws and regulations.

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On 24 July 2024 at 18:57


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