26 January 2017
One of my client who is a doctor is currently earning income by way of salary from a nursing home. As His income is more than 25 Lacs p.a. from salary, we are exploring to cover payment under professional income by entering into a retainer ship agreement with the nursing home. The Doctor wants to take benefit of newly inserted section 44ADA. As per my understanding on the basis of plain reading of law as some case laws this thing is prone to litigation. However as per decision of ITAT, Chandigarh in case of Fortis Hospital V/s ACIT, this benefit can be taken as long as we can show there is no employer employee relationship. My query is that if we take benefit of section 44ADA in such a case is there any issue, as the Doctor will be exclusively associated with a particular hospital, generally his expenses would be less than 50% of receipt as he does not own any setup of his own, services are to be provided at nursing home premises only. Is it advisable to do so. Please guide
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