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Audit u/s 44AB

Anish Jain (STUDENT) (51 Points)

06 July 2018

If an assessee has two businesses with a turnover of ₹1.90 Cr & ₹ 20 Lakhs, then is he required to get the accounts of both the businesses audited u/s 44AB?? Or he can opt for 44AD for the business having a turnover of ₹20 lakhs, and get the accounts of business having turnover of ₹1.90 cr audited??

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183854 Points)
Replied 06 July 2018

Multiple Business

The Aggregate ( Clubbing) sales, turnover and/or gross receipts of all Businesses ( ACIT v Dr K Satish Shetty) carried on by an assessee would be taken into consideration in determining whether the prescribed limit as laid down in section 44AB has been exceeded or not.

– Turnover is Assessee wise rather than Business wise

– Turnover of All Business Activities carried on by assessee is aggregated other than presumptive(44AD)

Yes, he can opt for 44AD for the business having a turnover of Rs.20 lakhs (provided eligible business), and get the accounts of business having turnover of Rs.1.90 cr audited.

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Sunil Suni (94 Points)
Replied 06 July 2018

is of practically possible to include both presumptive provisions u/s 44AD and financial s with audit report u/s 44AB in the same return of income of same assessee for same AY