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Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2012 ours is a proprietorship concern doing work on behalf of Banks,financial institutions etc such as verification of their clints loan documents, their financial informations, etc. Banks are paying us our charges as commision (TDS u/s194H), proffesional fees(TDS u/s194J). but we are excuting work through our no of semi skilled employees.my question is whether ours is a business or a proffesion. kindly clarify us. If this is treated as business than can we opt for 44AD for our Income Tax return filing. pls advice us.

Hitendra Jain

Hitendra Jain (Expert)

16 June 2012 The very purpose of classification of the activities done by you is to find eligibility under section 44AD. Sub Section 6 of Section 44AD denied specifically three Cases namely Profession defined under section 44AA which are
legal, Medical, Engineering or Architectural profession, Accountancy or technical consultancy or interior decoration or notified profession i.e. authorised representative, the profession of film artist (actor, cameraman, director, music director, art director, dance director, editor, singer, lyricist, story writer, screen play writer, dialogue writer and dress designer), Profession of Company Secretary, Profession of Information Technology
Income in the nature of commission or brokerage or
Agency business.
Verification of Client’s Documents or financial information is not explicitly concerned with the profession mentioned above but TDS deducted under section 194J and 194H canvass the income to the sweep of first and second abovementioned case.
And hence applicability of presumptive taxation u/section 44AD is denying in this case.

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