Hospital Establishment owned by a Non Doctor.

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This discussion explores the tax implications for a hospital owned by a non-doctor who employs salaried doctors. The core question is whether the owner's income falls under Section 44AD (business income) or Section 44ADA (profession income). Based on provided references, a hospital owned by a non-doctor is generally considered a business for tax purposes, not a profession.

Ch. Sai Sudha Mohan

Ch. Sai Sudha Mohan (Querist)
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25 August 2022 Mr. X (Not a Doctor) owns a Hospital. He employees Doctors and pays them salary. Does the Income of Mr. X from the Hospital eligible to be taxed U/s 44AD. Or is it considered a Profession to be taxed U/s 44ADA. Please suggest, along with case laws or notifications if any. Thank you in Advance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 August 2022 For Non-doctor owner it is a business...
Refer: https://abcaus.in/income-tax/non-doctor-running-hospital-not-professional-for-tax-audit-turnover-limit-purpose.html
Also refer:: https://www.caclubindia.com/experts/business-or-profession-813595.asp

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Ch. Sai Sudha Mohan

Ch. Sai Sudha Mohan (Querist)
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26 August 2022 Thank You Very Much Sir,

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 August 2022 Most Welcome ..

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