Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Applicability of 44ad to a doctor

KM Rajeev (others) (118 Points)

01 August 2011

Section 44AD applicable to a doctor who is running a privat clinic?

Reply
Follow
Share

22 Replies

Sanat kumar (Chartered Accountant) (265 Points)
Replied 01 August 2011

44AD is not applicable for a doctor.

It prescribes a method of presumptive taxation for assessee engaged in the business of civil construction or supply of labour for civil construction in which a sum equal to 8%of the gross receipts is deemed to be the profits and gains from business.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

suman (Auditor ) (388 Points)
Replied 01 August 2011

Originally posted by : Sanatkumar
	44AD is not applicable for a doctor. It prescribes a method of presumptive taxation for assessee engaged in the business of civil construction or supply of labour for civil construction in which a sum equal to 8%of the gross receipts is deemed to be the profits and gains from business.

Agreed with sanatkumar.

1 Like

KM Rajeev (others) (118 Points)
Replied 01 August 2011

But w.e.f AY 2010-11 44AD is applicable to any business except the business of plying, hiring or leasing of goods carriages specified U/s 44AE. So what is the position?

CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 01 August 2011

sanath kumar and suman you both are not updated.......

w.e.f a.y 2011-12 sec 44AD covers every business (Except to which 44AE applicable) but NOT PROFESSTION...

1 Like

KM Rajeev (others) (118 Points)
Replied 01 August 2011

Ankur that was my question. But is there any scope for litigation on this?

Upgrade to CAclubindia Pro. Subscribe Now!

shruthi p (Articled Assisstant) (27 Points)
Replied 01 August 2011

Section 44 AD (presumptive income ) is applicable only to :

1. assessee engaged in civil construction OR

2. supply of labour for civil construction OR

3. retail trade or other

{with a condition that gross receipts from the above business does not exceed Rs. 60 lacs. }

ESTIMATED INCOME: 8% of gross receipts or income declared whichever is high.

1 Like

CA Ashwani Agarwal (Practice) (3049 Points)
Replied 01 August 2011

No.. As doctors are clearly mentioned under the definition of profession u/s 44AA. So they cannot take benefit of 44AD. They have to maintain their books of A/c u/s 44AA and get them audited u/s 44AB if their receipts are more than 15 lakhs.

2 Like

(Guest)

Originally posted by : aNkuR jAin....................
	sanath kumar and suman you both are not updated....... w.e.f a.y 2011-12 sec 44AD covers every business (Except to which 44AE applicable) but NOT PROFESSTION...

u r right just add some more words....

1.44AB WILL BE APPLICABLE IF IT IS A PROPRIETORY CONCERN HAVING MORE THEN 15LAC GROSS RECEIPT

2.44AD WILL APPLY IF INCOME DECLARE BE LESS THEN 8%...........AND LESS THEN 15 LAC

3.IF HE IS PRICTISE IN THE NAME OF A COMPANY THEN ONLY 44AE WILL APPLY ..AS 44AB APPLIES ONLY TO INDIVUDIAL PROFESSIONAL DOCTORS....

THIS POINT I READ TODAY FRM TAXMANNS BOOK SPEALISED IN 44AB AND OTHER TAX AUDIT

I ALSO FINDSOME MORE TOPICS LIKE....COMPANIES TAX CONSULTANT OR STATUTORY AUDITOR CAN BE TAX AUDITOR U/S 44AB BUT INTERNAL AUDITOR CANNOT ..

IF PROFESSIONAL DOCTOR COVER U/S 44AD..HE NEED NOT KEPT HIS BOOKS OF ACCOUNT AND NO NEED TO DPREPARE FORM 3C

1 Like

Hardik Patel (B.Com, CA Final) (158 Points)
Replied 01 August 2011

Hey........... Sec. 44AD is applicable to all the business not only to Civil Construction.

2 Like

Devendra (Chartered Accountant) (4780 Points)
Replied 01 August 2011

SECTION 44AD APPLIES ONLY TO BUSINESS HAVING TURNOVER LESS THAN 60 LACS DURING THE PREVIOUS YEAR.

SECTION 44AD IS NOT APPLICABLE TO DOCTORS AS THE SAME IS A PROFESSION AND NOT A BUSINESS.

THE ASSESSE SHALL HAVE TO FILE HIS INCOME TAX RETURN IN ITR - 4.

REGARDS,

DEVENDRA

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 01 August 2011

Originally posted by : Devendra
	SECTION 44AD APPLIES ONLY TO BUSINESS HAVING TURNOVER LESS THAN 60 LACS DURING THE PREVIOUS YEAR. SECTION 44AD IS NOT APPLICABLE TO DOCTORS AS THE SAME IS A PROFESSION AND NOT A BUSINESS. THE ASSESSE SHALL HAVE TO FILE HIS INCOME TAX RETURN IN ITR - 4. REGARDS, DEVENDRA

AGREED

As Doctor is a profession mentoned under sec 44AA (1) and Therfore sec 44AD is not applicable to profession.

1 Like

Vishwas V Rao ( Chartered Accountant) (239 Points)
Replied 01 August 2011

Its not applicable to a doctor, it clearly says any other business which clearly says its not applicable for profession.

1 Like

CA Prateek Garg (CA in Practice) (1447 Points)
Replied 01 August 2011

44AD.

(1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”.

(2) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed :

Provided that where the eligible assessee is a firm, the salary and interest paid to its partners shall be deducted from the income computed under sub-section (1) subject to the conditions and limits specified in clause (b) of section 40.

(3) The written down value of any asset of an eligible business shall be deemed to have been calculated as if the eligible assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years.

(4) The provisions of Chapter XVII-C shall not apply to an eligible assessee in so far as they relate to the eligible business.

(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.

Explanation.—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) 27a ; 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 28 [sixty lakh rupees].]

1 Like