Profession+Small Business = 44ADA+44AD ?

Save Share

This query is : Resolved

Quick Summary

This discussion explores whether a professional filing under Section 44ADA can also benefit from Section 44AD for income from a partnership firm. The consensus is that you can claim benefits under both sections simultaneously. Salary received from a partnership firm is treated as income from business or profession, not personal salary, and can be claimed accordingly.

Gaurav Bidasaria

Gaurav Bidasaria (Querist)
Follow

25 August 2023 Hello,

I am an editor and writer who provides his services to a tech media company. I file returns under 44ADA.

Now, I am looking to enter into a partnership with a mobile+accessories seller, local shop, which is a partnership firm. Each month, a fixed amount will be paid as salary to all partners.

1. Can I claim relief for online profession as usual under 44ADA
2. Can I also claim relief for mobile shop partnership firm under 44AD at the same time?
3. If the mobile shop salary from partnership cannot be claimed under 44AD, can I still continue to claim relief for online services as professional under 44ADA?

What else should I keep in mind?

Thanks.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

26 August 2023 1 yes.
2 yes.
......

Gaurav Bidasaria

Gaurav Bidasaria (Querist)
Follow

01 September 2023 My CA told me to ask this:

I am receiving professional fees and filing return availing benefit under section 44ADA.

Now I will receive a salary from a partnership firm. Can I avail the benefit of section 44ADA on salary income received from the partnership firm?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

01 September 2023 Yes, you can avail.

Gaurav Bidasaria

Gaurav Bidasaria (Querist)
Follow

01 September 2023 Thank you, sir.

Can you pls elaborate as to how to treat income under head salary as income from business or profession?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

02 September 2023 It's income from business or profession only.
The salary from partnership firm should be treated as income from business or profession only as per income tax rules.
One can't pay salary himself.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now