Can Money Borrowing and Lending business under 44AD?

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Founder of Silly Tax Solutions
29 Points Posted on 20 October 2022

Im borrowing money at 11 percent and lending it to other person at 12% with motive of profit, can i show this as a bisness under 44AD and take benefit of 6% profit declaration of total interest earned though bank only

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On 20 October 2022 at 11:46 Report
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This discussion explores whether a money lending and borrowing business, where interest is earned, can be considered eligible for presumptive taxation under Section 44AD of the Income Tax Act. The consensus suggests that such a business can indeed be shown under 44AD, allowing for a profit declaration of 6% or 8% of the total interest earned, rather than the full turnover.

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Profession
28271 Points Posted on 20 October 2022
Is it certified by reserve bank of india.
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On 20 October 2022 at 13:36
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SEO Sai Gr. Hosp.
212535 Points Posted on 20 October 2022

@ Mr Sagar, 

You are confused over turnover of the business, it is not just interest earned!!!

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On 20 October 2022 at 20:26
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12244 Points Posted on 23 October 2022
Yes, you can show 8% or 6% of the interest income under 44AD
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On 23 October 2022 at 03:38

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