Eligibilty u/s 44ad

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2013 Is a freelance Journalist who earns income by contributing articles/ news stories in business journals covered by sec 44AD, if his gross earning is lower than 1 crore and declare his income @ 8% of gross receipts?
Journalist is not covered as Profession in sec 44AA.
Will his activity be treated as service business or as profession?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

04 July 2013 If we talk out of way, journalism has become a business.
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In spite of the bitter truth, Income-Tax Act greets it as a profession as per my view.
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Section 44AA prescribes requirement to maintain Books of Account. It never limits the scope of professional activities.
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As per Section 2(36) profession includes vocation.
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This definition delimits the scope of the term "profession".
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In my view, treating journalist as a business man would not be correct. He should be treated as a professional.
( I salute to the honest journalists)

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 Thank you for your response.
However, instructions for use of ITR4S provided by IT Department specifies who can and who can not use ITR4S. It mentions under 'Who can not use ITR4S':
---- Income from a profession as referred to in sub-section (1) of section 44AA or income from agency business or income in nature of commission or brokerage;

i.e restriction is only on specified professions, and not others.
Your views please?

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