Sec 44ad

an assessee running business of SERVICE CENTER can he claim his income  u/s 44AD?

Replies (2)

Dear Praveen,

Your query is logical!!!

Our law of Income tax nice one!!

It is just a game of words!!

Your query "Business of Service Center ......."

Sec 44AD is applied to "BUSINESS" ONLY  AND NOT TO "PROFESSION'

Business inclues Services which are not covered by the provision u/s44AA(1).

In philosophy manner I can say that " Each Profession is considered as services but each service can not be considered as profession.And So if it is not considered as Profession then it will be considered as Business"

So,you have to do the following;

1)Find out Which kind of service is provided by the service center.

2) Then compare it with the services mntioned u/s 44AA(1) .

3) If they fall with in the services mentioned under it then it will be considered as profession and provison of Sec 44AD will not apply.

4)If it does not fall under it then it will be considered as "Business " as u can apply the provison of Sec 44AD.

Thanks Kothari Ji

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