Sec 44ada or sec 44ad applicable

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This discussion explores whether a private hospital with gross receipts of £48 lacs can opt for presumptive taxation under Section 44ADA or 44AD of the Income Tax Act. While Section 44ADA allows for a 50% computation of income based on gross receipts for specified professions, its applicability to a hospital is debated due to the diverse services offered. Section 44AD might be an alternative if the hospital is considered a business and meets eligibility criteria.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

30 November 2021 Sir,
If a person running a private hospital (not a doctor) Gross receipts rs:48 lacs.
Question:
Sec 44ada or sec 44ad applicable in it act.

B Sathyanarayanan

B Sathyanarayanan (Expert)

30 November 2021 YOU CAN OPT FOR 44 ADA , your income will be computed on basis of 50% of gross receipts , but you have to pay advance tax before 15th March under presumptive and not required to maintain books of accounts .

Ashiwini Ballodia

Ashiwini Ballodia (Expert)

04 December 2021 As per me hospital cannot opt for 44ADA as in 44ADA it is given as specified profession but hospital also provides various other services also kindly correct me if I am wrong