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Turnover calculation sec 44ad from 2 sources of income

Rahim (Businessperson) (460 Points)

25 September 2016

Hello freinds.

Help me get a clear interpretation of Presumptive Taxation Sec 44AD.

If an individual has 2 business, will the total gross turnover from both business be considered for calculating Rs 2 Crore limit for Financial Year 2016-17 (AY 2017-18) or individual turnover from each business? Eg: Business 1 & 2 have Rs 1,20,00,000 and another Rs 85,00,000. turnover respectively. How will Sec 44AD be utilised? Will both business be eleigible to declare 8% profits and if no then will both be disqualified since aggregate is over Rs 2 crore?

Kindly give a detailed explanation please.

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 25 September 2016

For check the application of 44AD, TO of both the businesses are aggregated.

In this case when total TO is 2.05 Cr. Section 44AD cannot be applied, jointly or separately. Or both gets disqualified.

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Rahim (Businessperson) (460 Points)
Replied 25 September 2016

Thank you.
if the assessee is running a propreitorship whose tutnover is Rs 60 lakhs and is a 25% partner in a firm whose total turnover is Rs 2.75 crores. How will 44AD apply in this situation?