44AD real estate business

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Individuals or partnership firms involved in developing and selling plots may be eligible to claim Section 44AD of the Income Tax Act for presumptive taxation. This applies if your business turnover does not exceed INR 2 crores and you meet the criteria for an eligible assessee and eligible business. The recommended business code for this nature of business is '07003'.

akshay maloo

akshay maloo (Querist)

26 July 2022 Can I person who is into business of Developing and Selling of Plots claim section 44AD of Income Tax while filling ITR? If Yes, then what business code to be choose in case of nature of business?

Thank You

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 July 2022 Yes...
Code... '07003'

Adv. Ravish Bhatt, ADIT, CIOT

Adv. Ravish Bhatt, ADIT, CIOT (Expert)

29 July 2022 Sec 44AD presumptive taxation mechanism can be available to any ‘eligible assessee’ engaged in 'eligible business'

Eligible Assessee = an individual, HUF or a partnership firm (Not an LLP) that is a resident

Eligible Business = Any business except that of plying, hiring or leasing of goods carriage, turnover whereof does not exceed INR 2 crores in the previous year

So, 44AD available to you if you carrying the business as an individual or HUF or to a partnership firm if you are carrying on business through a partnership firm constituted under Indian
Partnership Act subject to gross receipts being less than INR 2 crore.

For codes check https://www.winmansoftware.com/files/Business_Profession_Nature.pdf

Author: Advocate Ravish Bhatt
Gmail: ravishdbhatt@gmail.com
Link to Linkedln Profile: https://bit.ly/3IDGfsU

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