Regarding 44ADA on Business Consultancy services

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A business owner with significant income from partnership salaries and director fees is considering forming a family partnership to offer business consultancy services. They want to know if this new consultancy partnership can use the presumptive taxation scheme under Section 44ADA. The advice suggests that due to their basic educational qualification and lack of specific professional listing under Section 44AA, they likely cannot opt for 44ADA. However, the partnership might be eligible for presumptive taxation under Section 44AD if it involves trading in goods or providing contractual services.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)
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07 April 2022 I am business man and I have partner of 2 business and director of a company. I have received partners salary and directors salary. My yearly income was approximately 25 lakh. Now I think that , have forming a partnership firm with my family member and issue taxable invoices to these entity as professional business consultant. In this situation can I opt 44ADA for my partnership.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 April 2022 What is your qualification.
Is it fits in section 44AA professional.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)
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08 April 2022 I have only basic education qualification only. Only a pre degree. But I have good experience in planning and executing business strategies. I am working with these experience.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 April 2022 You will not fall under professional listed under section 44AA. Hence you can't claim 44ADA option.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)
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08 April 2022 Thank you for your response. Please also clarify that is it only possible to run my business as normal partnership for income tax purpose. Whether there is an option for me for choosing presumptive taxation scheme

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 April 2022 44AD can be opted for your partnership business if it's doing trading in goods and providing contractual services.

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