If any assessee has two businesses and has the turnover from two different businesses as under:
1. Business -1: Rs. 25,00,000
2. Business-2: Rs. 1,85,00,000
Total Rs. 2,10,00,000
It is assumed that the cash receipts and payments for the above two businesses are less than 5% of total receipts and payments, hence the Tax Audit limit is Rs. 10 Crores.
The total turnover of the assessee is greater than Rs. 2 Crores.
Will he be eligible to opt for Section 44AD for Business-2 and file Income as per regular provisions for Business-1? (As turnover is less than Rs. 2 Crores for both two different businesses)
Note: The presumptive taxation scheme of section 44AD can be opted by the eligible persons if the total turnover or gross receipts from the business do not exceed Rs. 2,00,00,000.
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