Income from two business: 44AD + F&O

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Business
3 Points Posted on 15 January 2021

If I have business which is filed under 44AD.

And if I start another business, F&O trading. 

 

Example Situation:
Turnover of business 44AD: 50 lakhs - Profit: 8 lakhs
F&O Trading Turnover: 2 Cr

Can I file primary business under 44AD without audit. And F&O under audit. 

 

Will the situation change if I do some other second high Turnover business like Wholesale, Dealership, or Online Sales. Along with a traditional business which I continue to do under 44AD.

 

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On 15 January 2021 at 00:51 Report
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Quick Summary
This discussion explores the tax implications of having two businesses: one under Section 44AD and another involving F&O trading. The core question is whether these can be filed separately, especially regarding audit requirements. It highlights that if the aggregate turnover of all businesses exceeds the audit limit, they are consolidated for tax purposes, even if one business alone would not require an audit.

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Chartered Accountant
24588 Points Posted on 15 January 2021
Yes for 44AD your profit is greater than 8% of turnover and turnover is less than 2 crores rupees
F&O trading is liable for audit
For online sales profit should be 6% of turnover
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On 15 January 2021 at 09:36
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Tax consultant
5895 Points Posted on 15 January 2021
When you do all business together
and your whole total turnover over audit limit
then whole will be consolidate together
even if one business is also able to audit then also your whole business will take consideration
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On 15 January 2021 at 11:16
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17269 Points Posted on 15 January 2021
All business are put together for consideration of 44AB tax audit limits. please determine aggregate turnover . And then take a call.
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On 15 January 2021 at 15:07
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Business
3 Points Posted on 15 January 2021

Hi @ Sourav, 

Thanks for the response, your response is different from others. You mentioned that 44AD turnover can be separate and can be without audit, and F&O turnover and audit can be done separately. Are you sure about this? 

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On 15 January 2021 at 23:24

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