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Query on sec 44 ad

Jithendra kumar (Practising Chartered Accountant) (50 Points)

28 December 2011

Is Section 44 AD is applicable to Profession as well or for only Business?

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8 Replies

(Guest)

sec 44ad is applicable on to business and not professional

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CA SANDESH MAHIPAL (Practicing in GST and MSME ) (1985 Points)
Replied 28 December 2011

sec.44AD does not cover profession.

It only covers Business Income

CA sumit chejara (ca final) (99 Points)
Replied 28 December 2011

Section 44 of income tax covers only business, not profession

sadasivareddy (Employee) (78 Points)
Replied 28 December 2011

From Assessment year 2011-12, a new section 44Ad has been inserted inthe Income-tax Act to replaceexisting sec.44AD .
The new Section will be aplicable to any business ( whether it is Retail trade,or Civil construction or any other business).
The provisions of the new Section will be applicable if the following conditions are satisfied:
1.Assessee eligible for the purpose of this Section has to be an Individual/a HUF/a Partnership Firm( not being a LLP);
2.The assessee has not claimed any deduction u/s.10A,10AA,10B,10BA,80HHto 80RRB in the relevant Assessment Year;
3.he is not engaged in the business of plying,hiring,or leasing goods carriages referred to u/s. 44AE; and
4. Total Turnover/ Gross Receipt of the Assessee in the previous year should not exceed Rs.60.00 lakhs.