Section 44aa

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This query is : Resolved

Yajuvendra Rawat (Querist)

06 October 2015 Dear Friends,

Is section 44AD applicable to Animation Profession. Since they are professionals and get 10% profession fees deducted from their fees. Can they still opt for 44AD. Is there any possibility.

Regards,
Yajuvendra Rawat

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 October 2015 No professional can't opt for 44AD.

Amol S Joglekar

Amol S Joglekar (Expert)

06 October 2015 44AA. (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette.

The animation per se is NOT notified as profession by CBDT

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 October 2015 44AA is for maintenance of books of accounts.
44AD is applicable only for business not for professionals.

Amol S Joglekar

Amol S Joglekar (Expert)

06 October 2015 That is what I am trying to note down. Animation per se is not reported to be a PROFESSION, although in common parlour language it may be called as profession.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 October 2015 For the purpose of 44AD it is a profession TDS also deducted u/s 194J.

Amol S Joglekar

Amol S Joglekar (Expert)

06 October 2015 profession includes vocation sec 2(36)

sec 44AD (6) The provisions of this section, notwithstanding anything contained in the foregoing provisions, shall not apply to—
(i) a person carrying on profession as referred to in sub-section (1) of section 44AA;
(ii) a person earning income in the nature of commission or brokerage; or
(iii) a person carrying on any agency business.

The profession here means as is under 44AA

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