Section 44 ad
This query is : Resolved
05 July 2013
An assessee carrying on a business eligible under section 44 AD and at the same time receving commission from other source of income so will he be disallowed under section 44 AD or will he be allowed for the eligible business and taxed for commission seperately??
CA PARAS BAFNA
(Expert)
05 July 2013
For eligible business 44AD will be applicable & Commission income can be shown as regular business income.
Message likes :
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05 July 2013
But in the Act the language is assessee must be eligible and assessee is ineligible if he is carrying on a proffession or receiving brokerage?? Sir Please elaborate on this point
05 July 2013
But in the Act the language is assessee must be eligible and assessee is ineligible if he is carrying on a proffession or receiving brokerage?? Sir Please elaborate on this point
CA PARAS BAFNA
(Expert)
05 July 2013
An assessee is always an eligible assessee (EA) even if he carries on an ineligible business.
.
Please check the definition of "eligible assessee". It has nothing to do with the EB.
.
Similar is the case with the eligible business (EB) .
.
When ever EA and EB combines section applies to that extent only.
.
In sub-section (6) a person carrying on agency business has been excluded by mentioning that the section shall not apply to such person.
.
In such a situation for EB the person is EA but as commission is not EB vide the para above, the section can not be applied to that extent.
.
So you can say , we have to adopt fragmented approach for the same person.
.
An assessee is always an eligible assessee (EA) even if he carries on an ineligible business.
.
Please check the definition of "eligible assessee". It has nothing to do with the EB.
.
Similar is the case with the eligible business (EB) .
.
When ever EA and EB combines section applies to that extent only.
.
In sub-section (6) a person carrying on agency business has been excluded by mentioning that the section shall not apply to such person.
.
In such a situation for EB the person is EA but as commission is not EB vide the para above, the section can not be applied to that extent.
.
So you can say , we have to adopt fragmented approach for the same person.
.
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