Nursing Home Taxability

If an Individual is not doctor , and runs private nursing home,  he can show all his income/ receipt from nursing home , under section 44AD of the Income tax Act 1961 as business Income  , if he satisfy all the conditions  under section  44 AD of the Income tax Act 1961 , and can file ITR4 . 

Take more opinion as well . 

But which Business code will be selected no business code regarding nursing home is given in section 44AD 

A seperate business code given in section 44ADA

Business code for Nursing Home was " 18003 " , please confirm any changes . 

Also check  " Tax Audit " applicable or not in your case .

Yes, for AY 2026-27 (FY 2025-26, Income-tax Act 1961) a nursing home run as a business by a non-doctor usually goes under 44AD and ITR-4, provided these conditions hold:

- He is a resident individual, HUF or partnership firm (not an LLP)
- Turnover is up to Rs 2 crore, or up to Rs 3 crore if cash receipts are not more than 5% of total receipts
- Total income is up to Rs 50 lakh (above that it is ITR-3)
- No commission or agency income mixed in

Profit rate: 6% of the turnover received through banking or digital modes (account payee cheque, NEFT/UPI, card, insurance and TPA payments into the bank), 8% on cash receipts. Most nursing homes get a big share through insurers and cards, so the 6% part is often large. He can declare higher if actual profit is higher.

On the tax audit question, this is the part to get right:
- If he declares at or above 6%/8%, no audit under 44AB(e)
- If he declares below that and total income is above the basic exemption limit, audit is compulsory
- If he opts out of 44AD in a later year, he cannot use it for the next 5 years and books plus audit can follow

So check the margin on his books before choosing 44AD. If the real margin is under 6%, the lock-in and audit exposure make it a bad fit.

For the business code, please pick it from the drop-down in the ITR-4 utility for this year rather than relying on an old number, since the code list gets revised. If the return is not filed yet, the 31 July due date has passed, so it is a belated return under 139(4) with the Section 234F fee and 234A interest at 1% per month on tax due.

We file ITR-4 returns for small business owners on presumptive taxation, and this [ITR filing service for business owners](https://taxgarden.in/services/itr-filing) page lists the documents needed for a case like this.

If he's not a doctor, then he may file u/s 44AD.

If he's a doctor, then 44AD is not available.