Applicability of Sec. 44AD General Hospital

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This discussion explores whether Section 44AD of the Income Tax Act applies to a general hospital business formed by a partnership. Specifically, it addresses a scenario where doctors are partners but don't render services, while a non-doctor manages daily operations. The query seeks clarification on filing returns under Section 44AD versus Section 44ADA for such a hospital business.

Ch. Sai Sudha Mohan

Ch. Sai Sudha Mohan (Querist)
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23 December 2022 4 persons, (3 doctors and 1 Non Doctor) form a Firm to run the business of General Hospital. None of the 3 doctors, render their services in the hospital, however, the non doctor partner, maintains the day to day activities of the Hospital. Plese Suggest, is Section 44AD Applicable to file the return or should we consider the Income u/s 44ADA.