A gold appraiser providing valuation services to banks, with TDS deducted under Section 194JB, is seeking guidance on their Income Tax Return (ITR). They are unsure if their income can be declared under Section 44ADA as technical consultancy, despite lacking formal qualifications but possessing relevant skills and experience. Alternatively, they are considering Section 44AD for business income and need advice on reporting this in ITR-3 without maintaining books of accounts.
20 June 2025
A person works as a gold appraiser for various banks, providing valuation services for pledged gold. The banks have deducted TDS under Section 194JB. He is not a certified or formally qualified appraiser, but he has the necessary technical skills and experience in gold valuation.
*He operates independently and provides services for multiple banks. *He does not maintain any books of accounts.
Based on the above, I seek clarification on the correct tax treatment: 1. Can the income be shown under Section 44ADA (as technical consultancy), even though he is not formally qualified? 2. Alternatively, should the income be shown under Section 44AD as business income? 3. If filing under ITR-3, how should the income be reported without maintaining books of accounts?