Clarification about profession

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This query is : Resolved

abhimanyu (Querist)

15 July 2018 In the Clarifications given by Income Tax Department regarding Tax on Presumptive basis, following are mentioned
at link https://www.incometaxindia.gov.in/tutorials/13.%20tax%20on%20presumptive%20basis%20in%20case%20of%20certain%20eligible%20businesses.pdf

One

A person who is engaged in any profession as prescribed under section 44AA(1) cannot adopt
the presumptive taxation scheme of section 44AD.

As per Section 44(1)mentioned at one above, such professions are legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette

Two

:The presumptive taxation scheme of section 44ADA is designed to give relief to small taxpayers
engaged in specified profession.

Three

A person resident in India engaged in following professions can take advantage of presumptive
taxation scheme of section 44ADA:-
1) Legal
2) Medical
3) Engineering or architectural
4) Accountancy
5) Technical consultancy
6) Interior decoration
7) Any other profession as notified by CBDT

NOW THESE PROFESSIONS ARE SAME AS MENTIONED IN SECTION 44(1)

SO KINDLY CLARIFY AS TO WHY iNCOME tAX dEPARTMENT has said, as mentioned in one above that

"A person who is engaged in any profession as prescribed under section 44AA(1) cannot adopt the presumptive taxation scheme of section 44AD".

HERE REFERENCE OF SECTION 44AD IS GIVEN FOR PROFESSION WHEREAS FOR PROFESSION SECTION 44ADA HAS BEEN ADDED.

PLEASE CLARIFY

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

15 July 2018 Apart from above discussed businesses, a person carrying on profession as referred
to in section 44AA(1) is not eligible for presumptive taxation scheme. Please see
page-2 ( Businesses not covered under ............................44AD) of the link which
may be for clarity.

abhimanyu

abhimanyu (Querist)

16 July 2018 Sir, on page two, businesses are mentioned where as my query is about SPECIFIED PROFESSION only.

While at one Place it is stated that A person who is engaged in any profession as prescribed under section 44AA(1) cannot adopt the presumptive taxation scheme of section 44AD. on the other hand it is stated that :the presumptive taxation scheme of section 44ADA is designed to give relief to small taxpayers engaged in specified profession.. The specified profession mentioned in 44ADA are the same as mentioned in Section 44AA(1).

Thus two contradictory statements have been made about Specified Profession. In one statement, presumptive scheme cannot be adopted for such professions and in the other statements it is stated that presumptive scheme can be adopted for such specified professions.

PLEASE CLARIFY ABOUT SPECIFIED PROFESSIONS ONLY.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 September 2021 In one statement, presumptive scheme cannot be adopted for such professions
i.e. u/s. 44AD (for any business related activity) ....
and in the other statements it is stated that presumptive scheme can be adopted for such specified professions u/s. 44ADA (for the specified professional income) ...

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