Section 44ad

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abhishek (Querist)

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)

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

Message likes : 1 times

abhishek

abhishek (Querist)

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)

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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