Section 44AD

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This query is : Resolved

Dhiraj Bagri (Querist)

01 June 2011 Dear Experts,

Need clarification wrt Section 44AD.

Whether Renting of Immovable Property by an Individual can be considered in 44AD to calculate income on presumptive basis.

Also, This income used to be taxed under the head Income from House Property.

Your clarification would be of great consideration for me.

Thanking you

Aditya Maheshwari

Aditya Maheshwari (Expert)

01 June 2011 Renting taxable under the head income from house property and hence not taxable u/s 44AD and taxable normally.

Dhiraj Bagri

Dhiraj Bagri (Querist)

02 June 2011 Thanks Aditya Ji for the reply.

Further Commodity profit is considered as Business profit. Whether same can be considered under 44AD and consider the presumptive income for taxation purpose.

Also, plz give your view on whether we can take the income tax slab benefit for the Individual or HUF.

Thanking you

Aditya Maheshwari

Aditya Maheshwari (Expert)

02 June 2011 Commodites profit is just profit only and hence provisions of section 44AD should not apply though the Act does not state anything on this but it will not apply.

Further tax payable on income u/s 44AD will be taxable at slab rates only.

Dhiraj Bagri

Dhiraj Bagri (Querist)

02 June 2011 Actually commodity profit is taxed under profits and Gains from Business i.e. Business Profit and not any other head.

Hence I needed clarification as to the taxability under 44AD.

Thanking you

Aditya Maheshwari

Aditya Maheshwari (Expert)

02 June 2011 No 44AD NOT APPLICABLE FOR F & O trading.

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