Clarification required on 44ad of it act..

Mr. Business Mind

In my view an Author is a Professional within the meaning of Section 44AA. Hence, Section 44AD is not applicable for an Author.

No this is a profession so it should be shown under income from business and profession...

Thanks for the reply.

I would like to clarify one thing that profession of Mr.X is "a Publisher" (not a author).

I went through the professions listed under 44AA in google but nowhere found that Publishers also come under as profession.

Can you please guide me more on that "If Publishers comes under as profession in 44AA ". Thank you.

Publisher is not a Professional and running a Business. Clearly can adopt Section 44AD

Publishers maintains Printing Machineries and Materials and arranges Articles form Authors and arranges for Publications and Marketting. He is having Business Knowldge than a Professional Knowledge. He a Businessman and not Professional

Thanks a lot D.RAGAVAN.

But Mr.x is also works as "Editor" for this publication business. 

As a publisher - He is a businessman (44AD applicable)

As a Editor - He is a professional (44AA applicable)

So, please clarify finally which of these sections will be applied in this case. Thank you.

Dear

Editor in the Professional List not the Editor of Publications but means only Cinema Editor where professional Knowledge is required. Publication Editor is only a Job Oriented Position.  Even  if the Publication Editor is treated as Profession, in a composite situation, Publishers role is much bigger than the Editors Role and the transactions pertains to publication overtakes the Editor. Hence, Sec 44AD can clearly be applied

Many many thanks for clarifying the doubts.

Hence I can summarize the following points from this discussion:

1) He doesn't need to pay Income tax for 2012-13. 

2) The business isn't required to matain books of account or auditing till total turnover reaches 60Lakhs.

I think the above conclusions are correct. Thank you.