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Section 44ad query

Rakesh Rao (CA Final Student) (408 Points)

19 October 2014

Is section 44AD applicable to sportspersons? Also whether it is applicable to Referees and coaches?

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Ravi Ladia (Practising Chartered Accountant) (234 Points)
Replied 19 October 2014

Sec 44AD specially provides that it is not applicable to a professional.

All sports person, refrees and coaches would have to be categorized as professionals.

Thus they are not eligible to claim Sec 44 AD

Roopesh Gangisetty (Article trainee) (176 Points)
Replied 19 October 2014

Yes, All coaches & Refereee are termed as professionals.

And for them Sec 44 AD shall not be prevalied.

For any further clarrifications let me know...........

Saif Ali (Student) (132 Points)
Replied 19 October 2014

Can i get exhaustive list to the extent possible

Stranger (.) (5526 Points)
Replied 20 October 2014

Sec-44AD is applicable on coaches, refrees as well as sportspersons (provided other provisons of the section are satisfied) as these are not specified professions as per section -44AA(1).

For the purpose of Sec 44AA of Income Tax Act, 1961, legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, or any other notified profession (i.e., authorised representative, film artist, company secretary and information technology) are specified professions.

Authorised representative means a person who represents any other person, on payment of any fee or remuneration, before any Tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of accountancy.

A Film artist” means any person engaged in his professional capacity in the production of a cinematograph film whether produced by him or by any other person, as— (i) an actor (ii) a cameraman; (iii) a director, including an assistant director; (iv) a music director, including an assistant music director; (v) an art director, including an assistant art director; (vi) a dance director, including an assistant dance director; (vii) an editor; (viii) a singer; (ix) a lyricist; (x) a story writer; (xi) a screen-play writer; (xii) a dialogue writer; and (xiii) a dress designer.

Thus, the provisions of section 44AD (6), notwithstanding anything contained in the foregoing provisions, shall not apply to :-

(i) a person carrying on profession as referred to in sub-section (1) of section 44AA; or

(ii) a person earning income in the nature of commission or brokerage; or

(iii) a person carrying on any agency business.

Hope ur doubt is cleared now.

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