44AD

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This discussion clarifies the applicability of Section 44AD for partnership firms operating hospitals. Generally, Section 44AD applies to hospitals. If all partners are professionals, Section 44ADA may be applicable. However, if even one partner is non-professional, Section 44AD could apply, provided gross receipts are within the specified limits. Exceeding these limits necessitates compliance with Sections 44AA and 44AB, requiring account maintenance and audits.

Shakthi

Shakthi

(Querist)

13 June 2020 Dear Experts

Whether section 44AD can be applied to a partnership firm which runs a hospital or only 44ADA is applicable?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 June 2020 44AD only applicable to hospital.

PARAS CHHAJED

PARAS CHHAJED

(Expert)

14 June 2020 If all the partners are professionals then section 44ADA would be applicable and if at least one partner is a non professional then section 44AD would be applicable provided of course gross receipts are within the limits specified else section 44AA and section 44AB would be applicable and maintenance of accounts ad audit would be required.

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