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Presumptive tax for business as well as for profession

VEMULA NAGARAJU (Chartered Accountant) (138 Points)

16 April 2018

Hi Friends,

Person having business as well as profession , can he opt for presumptive tax U/s. 44AD as well as U/S. 44ADAA for same financial year. Please let me know.

Best Regards,

Nagaraju

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11 Replies

CA Shreya Jagani (Chartered Accountant) (242 Points)
Replied 16 April 2018

Yesss both section can be availed

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 16 April 2018

Yes you can claim.

1 Like

RAJA P M ("Do the Right Thing...!!!") (127129 Points)
Replied 16 April 2018

Yes...
A Assessee can avail the both sections if his business and Profession is eligible under the sec 44AD and 44ADA....

VEMULA NAGARAJU (Chartered Accountant) (138 Points)
Replied 16 April 2018

Thank you so much. If Business turnover is around 1.8 crore and professional gross revenue is around 40 lakh, both together will be more than 2 crore, I hope still they can claim under both sections 44AD and 44ADA

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 16 April 2018

No. This sections available up to gross receipts of 2 crore only, so you are compulsory required to get your accounts audited.

1 Like

Saifullah Khalid (Autodidact/Curious ) (633 Points)
Replied 17 April 2018

Originally posted by : CA Rashmi Gandhi
	No. This sections available up to gross receipts of 2 crore only, so you are compulsory required to get your accounts audited.

As per my understanding separate upper threshold limits are available for separate presumptive sections .. Bussiness and Profession are two distinct activities so an assesse can claim/avail upto 200 Lakhs turnover limit (for eligible Bussiness under 44AD) + 50 lakhs turnover limit (for eligible profession under 44ADA ) ..BOTH at the same time without audit requirements ....

P.S : If any one knows about some specific circular/official FAQ regarding this issue then please share .........

1 Like

RAJA P M ("Do the Right Thing...!!!") (127129 Points)
Replied 17 April 2018

Yes... I agreed to Mr Saifullah Khalid.,

A Assessee Can avail both sections related ceiling limit as per law. In sec 44AD the limit not exceeding Rs 2cr and Sec 44ADA not exceeding Rs 50L. So, He can avail Rs. 2.5cr as per above...

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 17 April 2018

Audit is compulsorily required as your turnover exceeds Rs.1 crore.

Limit of 2 crore is for opting. Sec 44AD

RAJA P M ("Do the Right Thing...!!!") (127129 Points)
Replied 17 April 2018

Yes... If it's exceed above 2cr (u/s 44ad) then audit is compulsory...

Yes... If it's exceed above 50L (u/s 44ada) then audit is compulsory...

As per above query both values are not exceeding the limit as per the sections...

So,
Audit is not required as per sec 44AD and 44ADA...

1 Like

VEMULA NAGARAJU (Chartered Accountant) (138 Points)
Replied 17 April 2018

Even 44AB specifies limits separately for business as 2 cr and profession 50 lakh, so I feel not required.

Nikhil Kaushik (Fellow CA) (85045 Points)
Replied 17 April 2018

1. 44AB limit is only 1 cr. It is only if you are offering income to tax under 44AD the limit available to you is Rs 2 cr

2. Not sure if the understanding that everyone here has shared is correct. 44AD excludes assessees covered under 44AA(1). so not sure if by virtue of 44AD(6)(1) as 44AA(1) professional can choose 44AD.