Section 44 ad urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2013 can an individual/ partnership firm engaged in providing coaching classes claim presumptive profits under 44AD?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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21 March 2013 Section 44Ad is not applicable to profession.

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2013 Dear Aayush

This is what my opinion about applicability of 44AD.

44AD is applicable to eligible assessees doing eligible business.

The definition of eligible business excludes the following:

Professions covered under 44AA.

Commission/ broking

agencies

Thus, 44AD is not applicable to only those professions which are covered under 44AA. There is no blanket exclusion of professions as such.

Further, please note that the term is not defined anywhere in the act. Accordingly, any exclusion/ inclusion has to be determined only on the basis of specific wording of the relevant section. In this case, 44AD excludes only 44AA and nothing else.

Thus, unless and until a profession is covered under the exclusion list, it should be allowed under 44AD.

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