Applicability of sec 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2013 A freelance Journalist earns income by writing in business journals published abroad, getting fee in free foreign exchange. Total receipts are less than INR 25 lakhs. Can he take advantage of sec 44AD and file ITR(S)? He has not kept any books of account, but all receipts are accounted in bank.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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02 July 2013 you can not take advantage of 44AD because it only for business not for profession.

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2013 Does it mean that he has to maintain books of account if his gross receipts are more than Rs 10 lakhs ? (Sec 44AA)

CA UMESH DULAL

CA UMESH DULAL (Expert)
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02 July 2013 Yes
he has to maintain books of accounts even if his income exceeds 1.20 lacs or gross turn over exceeds 10.00 lac

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 Journalist is not covered under sub section 1 of 44AA, nor it is notified as Profession by Board.
As per 44AD (6) exclusion is 'a person carrying on profession as referred to in sub-section (1) of section 44AA;'
So Journalist should not be excluded from applicability of 44AD.
Am I right? Kindly clear my doubt.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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03 July 2013 In 44 AA there is two types of profession

1. specified profession
2. other than specified profession

you will be cover under other than specified profession

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