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Return u/s 44ad

Sumiti Jain (FP) (1364 Points)

10 August 2013

If a person has more than two business. Is it legally valid to file his ITR as One business income u/s 44 AD and other business income by preparing Profit & Loss A/c.

or if a return is to file u/s 44 AD, gross receipts from all the business to be clubbed?

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4 Replies

CA Pallav Singhania (IT System Auditor) (33262 Points)
Replied 10 August 2013

ITR 4S Sugam

This Return Form is to be used by an individual/HUF whose total income for the assessment year 2013-14 includes :-

a) Business income where such income is computed in accordance with special provisions referred to in section 44AD and 44AE of the Act for computation of business income; or

b) Income from Salary/Pension; or
c) Income from One House Property (excluding cases where loss is brought forward from previous years); or
d) Income from Other Sources (Excluding winning from Lottery and Income from Race Horses)

Note:

1. The Income computed shall be presumed to have been computed after giving full effect to every loss, allowance, depreciation or deduction under the Income Tax Act.
2. Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used only if the Income being clubbed falls into either of the above income categories

This Return Form cannot be used to file the following incomes

a) Income from more than one House Property; or
b) Income from winning from Lottery or income from Race Horses; or
c) Income under the head "Capital Gains", e.g. Short term capital gains or long term capital gains from the sale of house, plot, shares etc.; or
d) Income from agriculture/exempt income in excess of ₹ 5,000; or
e) Income from Speculative Business and other special incomes; or
f) Income from a profession as referred to in sub-section (1) of section 44AA or income from agency business or income in nature of commission or brokerage; or
g)Person claiming relief of foreign tax paid under section 90,90A or 91;or
h)Any resident having an asset (including financial interest in any entity) located outside India or signing authority in any account located outside India.