As per Section 44AD(6) of the Income Tax Act, 1961, the provisions of Sec.44AD are not applicable to – (1) persons
carrying on professions that are referred to in Sec.44AA(1), (2) persons earning income in the nature of commission or brokerage, and (3) persons carrying on any agency business.As seen from the return of income filed,
the nature of business code mentioned is which falls in the categories mentioned above. Hence, the provisions of
Sec.44AD are not applicable, in your case.
As the provisions of Section 44AD are not applicable, in your case, the claim of computing profits and gains of
business on presumptive basis, under this special provision is not allowable. Hence, the above defect has to be
corrected by way of computing the profits and gains of business under the normal provisions and not under
Sec.44AD and offering the same.
The nature of business is 14005 - Other IT enabled services. It is not consultancy, agency or commission. I provide administrative services to foreign companies and I employ other people to get the job done.
Please help me with what I need to do here.
Thank you in advance for any help.
CAclubindia
