Sec 44ad

This query is : Resolved

mahendra kewlani (Querist)
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01 August 2014 A person is involved in wholesale business of raw cloth, is he eligible u/s 44AD of income tax, to pay tax @ 8% of its turnover...?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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01 August 2014 Yes, he can show his income u/s 44AD. 44AD covers any business other than agency, commission business or business which falls under section 44AE upto a gross turnover of Rs. 1 crore.

mahendra kewlani

mahendra kewlani (Querist)
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01 August 2014 He has two firms and the turnover of both the firms if added then it exceeds 1 Crore in that case is he eligible u/s: 44AD..?

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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01 August 2014 If he is sole proprietor of both firms then he will have to show total gross receipts from both firms and if it exceed Rs. 1 crore he can not file u/s 44AD.

mahendra kewlani

mahendra kewlani (Querist)
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01 August 2014 proprietor of both the firms are different 1)He himself is the owner, 2) His wife is the owner. now what...?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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01 August 2014 Then if prop. of both the firms are different, what's the issue? both can file their return separately showing net profit u/s 44AD of their respective proprietorship firms.