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Sec 44ada applicable only or both

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This query is : Resolved

Kollipara Sundaraiah (Querist)

27 August 2026 sir,
Assessee runs her Nursing home. She earns around Rs. 50 Lacs from OPD and Rs. 40 lacs from IPD i.e. deliveries and operations carried out at her nursing home. Can I opt for 44ADA for OPD receipts and 44AD for IPD reciepts?
Question: - Presumptive Income sec 44ada only or both applicable

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

27 August 2026 An assessee cannot arbitrarily split receipts from the same nursing home facility between Section 44ADA (OPD) and Section 44AD (IPD). A nursing home with IPD and surgical operations functions as a healthcare business entity rather than a pure medical profession practice. The total gross receipts of Rs. 90 Lakhs must be evaluated under proper business/professional heads, and maintaining regular books of accounts with proper tax audit applicability under Section 44AB should be examined.

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