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Regarding 44ad & 44ada

Vish (Business) (60 Points)

11 July 2017

I have certain queries regarding 44AD & 44ADA mentioned below.

Person carries three businesses. First is professional firm on partnership basis, second is export business on proprietor basis and third retail store on partnership basis. I have certain questional related to it.

1) Can this person opt for both 44AD & 44ADA ? How turnover and gross receipts are calculated in this case ?

2) This person carries business on partnership businesses. Now if he opt 44AD or 44ADA. Is it necessary for his partner also have to opt 44AD or 44ADA ?

3) This person wants to opt for 44AD or 44ADA for two businesses but for one business he wants to calculate according to normal tax system. Is it allowed ?

Awaiting for your insight

Regards

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5 Replies

(Guest)

There are three businesses and three assessees.

Business	Prof. firm, export business and retail store
Assessee	You, your partner and partnership firm

For export and retail business, you can declare incomes u/s 44AD (if it applies to you). And for professional firm, section 44ADA applies. Then partners' profit share in prof. firm is exempt in their hands.

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Vish (Business) (60 Points)
Replied 11 July 2017

For Export Business[Proprietor] [Turnover 50 Lac] and Prof. Firm [Partnership Firm][Gross receipt 20 Lac]. He wants to opt for 44AD for Export Business & 44ADA For Prof. Firm. For third retail business because it is partnership business and partner may refuse to opt for 44 AD. Turnover of retail business is 40 Lac and profit 5% after all expenses.

So is it allowed for person to apply for Export Business 44AD & Prof. Firm 44ADA ?

(Guest)

Is it allowed for person to apply for Export Business 44AD & Prof. Firm 44ADA ?

Yes.

Vish (Business) (60 Points)
Replied 12 July 2017

Is it allowed for person to apply for Export Business 44AD & Prof. Firm 44ADA ? Yes.

Relevant Question:

So this person don't need to maintain book of accounts for this two firm and audit is not required. For remaining firm regular filing and it is also audit free. Right ?
Another Question:

Individual PAN no. is XXXXXXXXXX and Same PAN No. for Export business; Turnover is 50 Lac and opting for 44D.

Professional Partnership Firm; Gross Receipt 20 Lac and Regular Tax Calculation

Retail Partnership store: Turnover 40 Lac and Regualar Tax Calculation.

How many ITR Form should be filled ? Which ITR Form in above cases ?

In which head professional partnership firm; partner salary would come in ITR ? How profit after tax in partnership take into Individual filing ?

In which head retail business partership firm; partner salary would come in ITR ?

Regards

(Guest)

So this person don't need to maintain book of accounts for this two firm and audit is not required. For remaining firm regular filing and it is also audit free. Right?

Yes, not required to maintain for income tax purpose. For another firm (retail store), if turnover is up to 2 cr then income needs to be declared at least 8%, else audit is required.

Individual PAN no. is XXXXXXXXXX and Same PAN No. for Export business; Turnover is 50 Lac and opting for 44D.

Professional Partnership Firm; Gross Receipt 20 Lac and Regular Tax Calculation

Covered u/s 44ADA

Retail Partnership store: Turnover 40 Lac and Regular Tax Calculation.

Covered u/s 44AD

How many ITR Form should be filed? Which ITR Form in above cases?

Four ITRs will be filed for you, your partner and two firm.

In which head professional partnership firm; partner salary would come in ITR? How profit after tax in partnership take into Individual filing?

Partners’ profit share is exempt in their hand. Partners’ salaries would be as per partnership deed otherwise not disclosed in income tax.

In which head retail business partnership firm; partner salary would come in ITR?

It is not shown in firm’s ITR, as you are filing it u/s 44AD.

For perfect compliance, you should hire a CA.