Simultaneous use of 44ada and 44ad?

Page no : 2

Santhosh Devulapally (20 Points)
Replied 10 March 2024

So we can’t use both at the same time. We can show f&o income as business and professional income under 44ada. What are the books of account to maintained for f&o income as all these are online transactions.

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 10 March 2024

F&O is allowed under Section 44AD even in scrutiny proceedings same was accepted.

Again we can't opt 44ADA in case of F&O as nowhere in law is given that one can't opt for both simultaneously.

If the business belongs to profession you can opt for 44ADA and for other business opt 44AD.

RAJA P M ("Do the Right Thing...!!!") (127453 Points)
Replied 10 March 2024

Still it's not good... Also can't accept..

F and O income can't be u/s 44ad.

It's my stands...

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 10 March 2024

Sir just Google it and check some articles.

Also no section in law specified that we can't opt for 44AD in case of F&O

RAJA P M ("Do the Right Thing...!!!") (127453 Points)
Replied 10 March 2024

Originally posted by : CA Rashmi Gandhi
	Sir just Google it and check some articles.Also no section in law specified that we can't opt for 44AD in case of F&O

Mam same as ,

Also no section in law specified that we can opt for 44AD in case of F&O.

( No issues You can as Your view)

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 10 March 2024

Sir go through case law of Niranjan Jata, Bhubaneswar vs Dcit,Salary Circle-3(1), Bhubaneswar on 31 December, 2019 decided by Appellate Tribunal.

Nikhil Kaushik (Fellow CA) (85360 Points)
Replied 10 March 2024

correct. you cannot use 44AD once you are a person with income covered under 44AA(1).

Nikhil Kaushik (Fellow CA) (85360 Points)
Replied 10 March 2024

ma'am. sorry you cannot use both sections. This is explicitly covered under the provisions of 44AD(6). any "person" covered under 44AA(1) is barred from 44AD. the exclusion is based on the person not the nature of income.