Section 44ad

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chirag_shethca (Querist)
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30 August 2013 Sir, i have three querries

1. Whether Renumeration received from firm which is taxed as bussiness income can be offered for tax under Section 44AD. if Not then why.

2. Whether income/loss under f&o transactions is compulsorly covered u/s 44AD? becuz one single transaction in F&O i have incurred loss of 25k. do i have to go for tax audit?

3. Whether an Artist who maakes and sales painting on a regularly basis can be covered under section 44AD.

Your Early reply will be highly appreciated

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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31 August 2013 1. No, aa 44ad provides presumptive taxation on turnover

2. No tax audit required

3. Not covered

chirag_shethca

chirag_shethca (Querist)
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03 September 2013 Sir, With respect to Point no 3.. We are paying VAT on the paintings that are sold to the client or the Art gallery and this was after the VAT dept visited the studio. wouldnt this can be a case of Business Income ? Further u/s 44ab the term artisit is with reference to film artist.
Sir can you plz provide some reference with respect to this as why is to considered as professional income and not a business income .

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