Sec 44ad - any restriction that income for which tds u/s194j has been deducted cannot be claimed

A person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette is eligible to opt for sec. 44ADA of IT act, for assessment of his professional income under presumptive scheme.

As per sec. 194J TDS is required to be deucted by deductor for 

(a) fees for professional services, or

 (b) fees for technical services, or

(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, or

 (c) royalty, or

 (d) any sum referred to in clause (va) of section 28.

Combined reading of both the sections implies section 194J not only includes professional services as in sec. 44ADA, but also other services which are out of ambit of the sec. 44ADA. 

So, because of TDS deduction u/s. 194J do not automatically imply liability as per sec. 44ADA.

Even professionals like engineers having construction contract, doctors running hospitals are classified under business and can opt sec. 44AD but not compulsorily sec. 44ADA.

So, you have to justify your activity as business  under law, and deny the applicability of sec. 44ADA, as specified profession under sec. 44AA(1).

Hi Sriram Kartik, 

Plse tell, what happened in the end. Cos I'm in a same kind of situation 

Regards