Income tax 44ad

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.

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