Section 44ab and 44ad
This query is : Resolved
14 October 2013
I am having 2 Business as follows:-
1. A Having T.O More than 1 Crore
2. B Having T.O. 50 Lacs
I want to get the benefit of section 44AD for Business "B" and to get the audit books of Business "A" as i am not maintaining the books for B.
Is it possible ?
Pls. advice
1. A Having T.O More than 1 Crore
2. B Having T.O. 50 Lacs
I want to get the benefit of section 44AD for Business "B" and to get the audit books of Business "A" as i am not maintaining the books for B.
Is it possible ?
Pls. advice
14 October 2013
In cases where the assessee carries on more than one business activity, the results of all business activities should be clubbed together.
In other words, the aggregate sales, turnover and/or gross receipts of all businesses carried on by an assessee would be taken into consideration in determining whether the limit of Rs. 100.0 Lacs as laid down in this section has been exceeded or not.
In other words, the aggregate sales, turnover and/or gross receipts of all businesses carried on by an assessee would be taken into consideration in determining whether the limit of Rs. 100.0 Lacs as laid down in this section has been exceeded or not.
14 October 2013
thanks and what about section 44AE in setead of section 44AD
14 October 2013
As per section 44AE of the Income Tax Act, 1961 assessee who owns less than 10 goods carriages during the year and engaged in the business of plying, hiring or leasing such goods carriages then the income such business will be deemed to be considered as Rs 5,000/- for heavy vehicle and Rs.4,500/-other than heavy vehicle per month.
In the given provision ownership is considered as point of taxation, so whether assessee run the vehicle or not he has to pay the tax on deemed income.
A consolidated balance sheet needs to be prepared in case of multiple business,
as your gross turnover {clubbed the turnover of both business}exceeds the 1 crore limit you are liable to tax audit..
In the given provision ownership is considered as point of taxation, so whether assessee run the vehicle or not he has to pay the tax on deemed income.
A consolidated balance sheet needs to be prepared in case of multiple business,
as your gross turnover {clubbed the turnover of both business}exceeds the 1 crore limit you are liable to tax audit..
14 October 2013
pls. refer subsection 5 of section 44AE
in this case the T.O.under section 44AE not liable to included for the purpose of Section 44AB.
the same provision were there in earlier section 44AD, i think the same position is there at present but not written specifically.
in this case the T.O.under section 44AE not liable to included for the purpose of Section 44AB.
the same provision were there in earlier section 44AD, i think the same position is there at present but not written specifically.
14 October 2013
If you are offering presumptive income more than the amount specified U/S 44AE,
Then no need to comply with the provision U/S 44AB..
Assessee offering income on presumptive basis is not required to maintain books of account & other documents as prescribed u/s 44AA and audit u/s 44AB.
However in case assessee claims that he has earned income lower than specified amount, Ss. 44AE(7) and 44AA(2)(iii), mandates him to maintain books of account and other documents as specified u/s 44AA, get them audited from the accountant and furnish report as required u/s 44AB.
Then no need to comply with the provision U/S 44AB..
Assessee offering income on presumptive basis is not required to maintain books of account & other documents as prescribed u/s 44AA and audit u/s 44AB.
However in case assessee claims that he has earned income lower than specified amount, Ss. 44AE(7) and 44AA(2)(iii), mandates him to maintain books of account and other documents as specified u/s 44AA, get them audited from the accountant and furnish report as required u/s 44AB.
14 October 2013
Pls refer Claue no 5.19 of GN on Tax Audit issued in 2013 which speaks for clubbing of Turnover in case of multiple business.
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