Section 44ad

This query is : Resolved

abhishek (Querist)
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25 July 2016 We started a partnership firm in Jan 2016. The first three months, we did one project. It was to shoot an event and provide them the video. We didn't maintain any books. So I was thinking of filing under section 44AD. They deducted a TDS of 10%. What should I select nature of business. Since we were just contractors, we hired cameramen etc for the same, I was thinking contractor-others. But they deducted 10% TDS and in case of contractors, TDS should be 2% (or 1%).

So I was wondering what should be the correct step.

Amol S Joglekar

Amol S Joglekar (Expert)
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25 July 2016 TDS depends upon the safe playing attitude of the person deducting the tax....it should not be taken as conclusive....
From the write up it appears to be a works contract......
so you can opt for 44AD

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abhishek

abhishek (Querist)
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25 July 2016 Thanks. Does the deductor mention any "code" etc while deducting the TDS? I mean if they deducted it as "professional services", then can Income Tax department raise a query?

Amol S Joglekar

Amol S Joglekar (Expert)
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25 July 2016 the section number is written in the certificate.
Income tax dept may raise the query. But you can explain the same to dept.

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