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Merchant navy || seafarer || 194j

Krishna Chaitanya (Student CA Final) (4 Points)

17 July 2019

Hello there,

For a merchant navy engineer TDS is being deducted u/s 194J. Can income be computed u/s 44ADA i.e. presumptive basis?

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3 Replies

rama krishnan (12244 Points)
Replied 17 July 2019

yes you can since engineering is one of the profession prescribed under 44aa

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 18 July 2019

1. As per sec 44ADA person who is an eligible assessee under sec 44AA will qualify for claiming presumptive taxation scheme under sec 44ADA.
2. Engineering is one of the profession specified u/s 44AA and for the purpose of sec 44ADA, he will be considered as an eligible assessee.
3. In the above case, you have specified as "Merchant Navy Engineer" if you have been providing services like consulting or other professional services then deduction of TDS u/s 194J and showing income under sec 44ADA is justified. But make sure you are not in employment-related services which makes it taxable under the head Salary u/s 192. Sometimes companies err in making payments and deducting tax without determining the nature of employment.
4. From the above understanding sec 44ADA will be applicable to a person engaged in the engineer profession.
Please correct me if the above solution has an alternative view.

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Dinesh Bhutra (49 Points)
Replied 22 July 2019

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