Urgent! pls help frnds, regarding sec.44ad!

Friends,

I am very Confused about presumptive taxation, in 2 problems, am working in excel.

1. The Assessee is doing Money Lending Business.WHETHER MONEY LENDING COMES UNDER THE PURVIEW OF SEC.44AD? 

I get Business Loss of 617036.51, as per books. The Only Business income taken for gross receipts is interest received=66393. If i take, business Loss, HE GETS TAX REFUND. IF I APPLY SEC.44AD AND TAKE 8% OF 66393, THE TAX AMOUNT COMES MORE THAN 50000. AM VERY CONFUSED. PLS HELP..

2.THE SAME QUERY IN 2ND PROBLEM. HE IS NOT A MONEY LENDER. BUT DOES SHARE TRADING AND SPECULATIVE BUSINESS. AM  I SUPPOSE TO TAKE BUSINESS LOSS OR 8% OF ONLY BUSINESS INCOME INTEREST RECEIVED??

 

PLS PLS REPLY..

Replies (1)

Sec 44AD is applicable only in case individual or HUFassesse  engaged in trading activity wheather retail or wholesale therefore, money lending doesnt come within the purview of Sec44AD . Therefore, profit and loss account is prepeared in this case.

 

If it is a company which is engaged in business of banking or business of lending loans and advances then it is not a speculative income.

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