44AD & 44AB

This query is : Resolved

NANDAN (Querist)
Follow

24 August 2017 Dear sir/ madam, An electrical engineer have income from profession and doing work contracts, in this case he can file return for professional receipts under section 44ADA and business income under section 44AD?

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

25 August 2017 yes, but the limits under respective sections should NOT be used separately.....please be careful of section 44AA and 44AB, while doing so.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

25 August 2017 once you are covered under 44AA professions, 44AD is ruled out.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

25 August 2017 A better view is given by Nikhil Ji.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

25 August 2017 May be because some people are NOT able to visualise and accept that a professional can have both types of incomes.....income from profession + income from business....(This is quite common in cases of engineers, architects, lawyers, unlike CA, CS and CMA)

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

25 August 2017 Amol, it is not a matter of visualization. Section 44AD excludes assessees covered under 44AA completely. So it is just a case of prohibition under the act.

NANDAN

NANDAN (Querist)
Follow

25 August 2017 If an assesse have income as per section 44AA(2)(i), he can file his return u/s 44AD?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

25 August 2017 as an engineer, you are covered under 44AA(1). So no 44AD

NANDAN

NANDAN (Querist)
Follow

25 August 2017 ok, but if he has income from contract?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

25 August 2017 i already answered the same above...you cannot use 44AD. go under 44ADA or normal non-presumptive taxation. also, please develop habit of reading the bare act.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now