Part time salary and section 44ad

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anuj (Querist)
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02 November 2011 hi,One of my Friend earn part time salary (who see the ESI & PF related documentation-not accountant)from 10 to 12 firms having gross annual receipt of 150000 less expense around 45000/- so net income 105000(150000-45000) and also receive full time salary of Rs 80000/- annually .so his total income Rs 185000/-.
1) can he file return under section 44AD 2)can he treat part time salary as professional income & is he required to maintain book of accounts..please suggest.

anuj

anuj (Querist)
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03 November 2011 experts..please suggest

Aditya Gopinath V

Aditya Gopinath V (Expert)
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04 November 2011 Dear Anuj,
You just mentioned PART TIME SALARY. For an income to be charged under the head Salary there should be employer and employee relationship. So if the employer employee relationship exists whether its a part ime or full time, it shall be charged under the head Income from Salary.

anuj

anuj (Querist)
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04 November 2011 thanks for the reply sir.but can we treat it as professional income if i not use the word part time salary.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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05 November 2011 You may treat the income as Consultancy Charges Received.

Since your friend is not a qualified professional (like CA, CS, CMA etc) as referred in Section 44AA(1), his income may be treated as Business Income.

He can file his Return U/s 44AD by showing such Consultancy Income as Business Income.

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anuj

anuj (Querist)
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05 November 2011 thank you paras sir.