SECTION 44AD

Page no : 2

SURANA (PROPRIETOR) (515 Points)
Replied 19 June 2018

Hello Sir

Sorry to make this post / issue alive again... since after reading the book on GUIDE TO PRESUMPTIVE TAXATION UNDER SECTIONS 44AD, 44ADA & AA4E by CA. SRINIVASAN ANAND G., where all such examples are present and its answer...

so according to this book if there are more then one business income and if one of them is disqualified then the assesee cannot opt for 44AD for its other eligible business too...

Since the ICAI has given suggestion to amend this clause,, is this same accepted my CBDT ? and circular from CBDT in regard to this cases...

The change in Business code mite result into defective if this suggestion my ICAI are not implemented and getting audit later for such business mite hurt the assessee :( so trying to search for final authority decision :)

Any help with regard to this issue would be great. Thank You in Advance

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Nikhil Kaushik (Fellow CA) (85743 Points)
Replied 19 June 2018

Originally posted by : SURANA
	Hello Sir Sorry to make this post / issue alive again... since after reading the book on GUIDE TO PRESUMPTIVE TAXATION UNDER SECTIONS 44AD, 44ADA & AA4E by CA. SRINIVASAN ANAND G., where all such examples are present and its answer... so according to this book if there are more then one business income and if one of them is disqualified then the assesee cannot opt for 44AD for its other eligible business too... Since the ICAI has given suggestion to amend this clause,, is this same accepted my CBDT ? and circular from CBDT in regard to this cases... The change in Business code mite result into defective if this suggestion my ICAI are not implemented and getting audit later for such business mite hurt the assessee :( so trying to search for final authority decision :) Any help with regard to this issue would be great. Thank You in Advance

ICAI has just made a suggestion. No action on it yet.

Also, you need to understand the difference between a disqualified business and a disqualified assessee.

Once an assessee is disqualified, then 44AD is completely out of picture. However, there could be a case of a disqualified business along with an eligible business. In such cases you should be able to availt the benefits of 44AD without a problem for the eligible business.

Having said that, there is another issue that has propped up that in cases where individuals not covered under 44AA(1), have availed for 44AD, have received defective returns notice in case the TDS has been deducted under 194J.