Section 44ada

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2017 Can an assessee who is providing service like journalism/ writer/ management consultant etc, requiring specialised skills, but does not come under professions specified under sec 44AA, take advantage of section 44ADA or 44AD? Or is he compulsorily required to provide full details of Profit and Loss and Balance Sheet? In case his profit comes to less than 50% of gross earnings, will he be required to get his accounts tax audited?
Can an assessee covered under sec 44AA has to provide full details of Profit and loss, and not select item 53 and yet must declare at least 50% of gross earnings as profit to avoid tax audit?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 November 2017 Person referred is not eligible to opt 44ADA since the profession referred is not
covered in 44AA(1).

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2017 They are also not covered u/s 44AD as they are not business. This means presumptive income is not applicable to such service providers. Then they must calculate income as per their account books maintained as per section 44aa and provide details of profit and loss and balance sheet in part A. The requirement of declaring profit more than 50% of gross earnings should not apply to them and requirement of tax audit if gross earning is less than 50 lakhs should also not apply. Am I correct? Why notice u/s 139(9) for defective return with defect code 181 being issued under such cases?