44ad

WILL WORKS CONTRACT BE COVERED U/S 44 AD . MY CLIENT PROVIDES GENERATOR SERVICE TO BANKS , INSTITUTIONS , OFFICES , ON OCCASSIONS LIKE MARRIAGES AND PARTIES ETC .THEIR TDS IS DEDUCTED U/S 194C.

44AD EXCLUDES , PROFESSION U/S 44AA(1) , I SUGGESTED MY CLIENT TO COVER THEIR FIRM U/S 44 AD AND PAY TAX ON 8% OF PROFIT , IS IT CORRECT . THEIR TURNOVER IS LESS THAN 1 CRORE. PLZ REPLY URGENTLY

Replies (2)

yes you are correct as per section 44AD

For the purposes of this section,—

 (a) "eligible assessee" means,—

  (i)  an individual, Hindu undivided family or a partnership firm, who is a resident, but not a limited liability partnership firm as defined under clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); and

 (ii)  who has not claimed deduction under any of the sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VIA under the heading "C. - Deductions in respect of certain incomes" in the relevant assessment year;

(b) "eligible business" means,—

  (i)  any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE; and

 (ii)  whose total turnover or gross receipts in the previous year does not exceed an amount of one crore rupees.

44AD(6) shall not apply to—

  (i)  a person carrying on profession as referred to in sub-section (1) of section 44AA;

 (ii)  a person earning income in the nature of commission or brokerage; or

(iii)  a person carrying on any agency business.

My question is that  a cab driver is earning income under S194C, he also has income from Insurance commission which is his minor income.  Now can he avail the benefits of S 44AD? Please advice.

 

Shashank

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