Applicability of section 44ad

Tax planning 2101 views 4 replies

Can Section 44AD be applied on a service provider and income shown @ 8% ???

Replies (4)

Yes, subject to certain conditions:

1. assessee must be individual, huf and partnership firm,

2. assessee should not be carrying on eligible business that is other than plying hiring or leasing of goods carriages

3.Turnover or gross receipt does not exceed 60 lacs in the previous year.

For more details, refer the following article submitted by Mr. Amol Gopal Kabra

/articles/new-section-44ad-text-and-discussion-9713.asp

If service provider is a professional covered under the provisions of section 44AA, then Section 44 AD will not be applicable to such perso.

 

So please check the nature of business or profession of concerned person before making applicability of Section 44AD.

 

Rest of the conditions are already explained by Sonam.

The meaning of the word professionals has only been specified in Section 44AA

 

And Section 44AA mentions some professions and then says any other profession as notified by the Board...

 

Could you please guide me regarding the professions which have been notified by the Board ??

 

 

 

 

the file relating to your querry is attached.

and may be after reading that your query will be solved,

But if it still persist, plz share


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