clarification with respect to 44ad

161 views 6 replies
1. a partnership firm formed for renting of immovable property like land

2. that is the one and only business it has and no other incomes

3. TO is less than 2cr

Question: Can it opt for 44AD .? by taking support from chennai properties & investments ltd vs CIT (supreme Court judgement)
Replies (6)
hi sir,
yes sir you are eligible for presumptive taxation i.e you have to pay 8%.
any business you can eligible for 44ad.
no restriction of the business but not illegal business.
and here it case law says that if it is commercial purpose and commonly trade then it is pgbp.
and your own property letting out will be treated as ifhp or cg. so it up to you now what it will be and if it's pgbp then it will be eligible for 44ad
if own property letted out it will be IFHP. but how it could be CG
yes sir you said land
leasing of immovable property comes under IFOS i think .. .. transfers comes unde CG i think so..
SIR
YES SIR URR RIGHT.
I M SORRY I WAS MISTAKEN.
IT WILL BE IFOS.
BUT YOU ARE ELIGIBLE FOR 44AD.
AS IT IS BUSINESS
if the partnership deed have the rental clause, then it can be taken as pgbp

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