IS 44AB AUDIT APPLICABLE?

Hai divya no doubt it comes under proffessional sec 44AB clarifies doctors, actors,lawyers are proffessionals. so the firm must be liabile to audit u/s44AB and they should be require to maintain books as per sec 44AA

OM SAI SRI SAI JAI JAI SAI

it is profession. and SEC 44AB is applicable. They are liable for TAX AUDIT under sec 44AB.

Pankaj sir is write

I too agree with Mr. Pankaj Gulati's opinion. By running a hospital, the profession is taken over by business. In case of hospital their profession will become one of the several business activities being run in the hospital. Clearly 44AB in this case shall not be applicable.

i also agree wid d rest.. it is a profession ..

To tide over the confusion whether running a hospital is a business activity or profession, you can refer to the Commissioner of Income Tax (CIT) v K K Shah case. Here, it was held if the doctors are running nursing homes (polyclinics) for treating their own patients, the income from the nursing home must be treated as their professional income. But if the nursing home runs a drug store for selling drugs to patients or others, admits patients and charges fees such as room fees, this can be considered to a business activity and that part of the income is business income.Tks.

agree with rohit sir            

Hello

Please let me know whether the corporate agent of any insurance agency is covered under profession category and the audit u/s 44AB will be applicable for receipts over 10 lacs.

K K GUPTA

I agree with Mr. Pankaj Gulati.

I have a question if 3 person form a partnership firm and made a hospital. They hire doctors and other staff on salary basis. This hospital provide all types of service like rooms, wards, laboratry testing, opd, consultancy etc etc. Is this firm comes under business or profession.

As per the case of Shalini Hospitals vs Asstt. Cit on 26 May, 2006, as attached, the activity of a hospital will be considered as business and not profession.