Hello,
Is Stationary and Shopkeeper also running Photocopy liable to pay tax u/s 44AD?
what is his tax treatment normal busness head ?
RAMESH SHARMA JANGID (CA FINAL ) (243 Points)
30 August 2013Hello,
Is Stationary and Shopkeeper also running Photocopy liable to pay tax u/s 44AD?
what is his tax treatment normal busness head ?
Siddharth
(Student)
(128 Points)
Replied 30 August 2013
Dear Sharma,
Sec 44ad is applicable to any resident individual except those who are engaged in business of hiring,plying or leasing goods carriage.
For 44ad to be applicable he should not claim deduction under sec10A, 10AA, 10B, 10BA.
It is taxable under profits and gains of business or profession.
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 30 August 2013
Dear Ramesh,
It is optional (recommended section) to follow presumptive taxation u/s 44AD to calculate profits.. it is not that they are liable to income tax under 44AD.. if they maintain books of accounts, they may opt for normal provisions (not 44AD).
But if you ask that are they eligible for 44AD? then the answer is yes, anyone can opt for 44AD, as also said by Mr. Siddharth.
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
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