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Income from two business: 44AD + F&O

Pankaj (Business) (3 Points)

15 January 2021

If I have business which is filed under 44AD.

And if I start another business, F&O trading.

Example Situation:
Turnover of business 44AD: 50 lakhs - Profit: 8 lakhs
F&O Trading Turnover: 2 Cr

Can I file primary business under 44AD without audit. And F&O under audit.

Will the situation change if I do some other second high Turnover business like Wholesale, Dealership, or Online Sales. Along with a traditional business which I continue to do under 44AD.

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4 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 15 January 2021

Yes for 44AD your profit is greater than 8% of turnover and turnover is less than 2 crores rupees
F&O trading is liable for audit
For online sales profit should be 6% of turnover

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ayusmita (Tax consultant) (5885 Points)
Replied 15 January 2021

When you do all business together
and your whole total turnover over audit limit
then whole will be consolidate together
even if one business is also able to audit then also your whole business will take consideration

Kapadia Pravin (17254 Points)
Replied 15 January 2021

All business are put together for consideration of 44AB tax audit limits. please determine aggregate turnover . And then take a call.

Pankaj (Business) (3 Points)
Replied 15 January 2021

Hi @ Sourav,

Thanks for the response, your response is different from others. You mentioned that 44AD turnover can be separate and can be without audit, and F&O turnover and audit can be done separately. Are you sure about this?