Momey lending business
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 September 2013
respected sir ,
whether money lending business becomes eligible business for sec 44ad or not .my opinion is it is eligible business please discuss
thanking you
whether money lending business becomes eligible business for sec 44ad or not .my opinion is it is eligible business please discuss
thanking you
17 September 2013
Section 44AD states taht
"Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”."
Eligible business is defined as-
i) any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE; and
(ii) whose total turnover or gross receipts in the previous year does not exceed an amount of one crore rupees.
Thus, money lending is not excluded from the purview of Section 44AD, and therefore, money lending business is eligible business for section 44AD.
"Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”."
Eligible business is defined as-
i) any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE; and
(ii) whose total turnover or gross receipts in the previous year does not exceed an amount of one crore rupees.
Thus, money lending is not excluded from the purview of Section 44AD, and therefore, money lending business is eligible business for section 44AD.
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