Gross receipt u/s 44ada includes loan credited in bank a/c

Tax queries 313 views 4 replies

Hi all

The limit u/s 44ADA states T.O. or Gross Receipt should not exceed 50lakhs

My Query is

1) What does Gross Receipt Mean ?

Does it Mean all the credits in bank A/c including Loan taken

Eg. T.O. ie sale is 40lakh (<50lakh)

and 

Loan taken in C.Y. is 25 lakh

thus total Credits in Bank A/c is 65 lakh (>50lakh)

 Is the Assesse eligible for the benefit of 44ADA ?

 

Thanks in Advance

Replies (4)

Loan amount is not added to turnover.

He is otherwise eligible for sec. 44ADA.....

Thanks a lot Sir !!

in your case it is 44AD and not 44ADA
Turnover is nothing but SALES. Loan amount is not Sales.
The turnover or gross limits under 44AD is 2 crore
my client is a professional..hence its 44ada


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