Section 44AD not cover to Profession

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Section 44AD uses the words “Business”. The word “business” is different from “profession”. Section 2(13) defines “business” to include any trade, commerce or manufacture or any adventure in the nature of trade, commerce or manufacture. Whereas, section 2(36) defines “profession” to include vocation.



One may note that business does not include profession as held in G.K. Choksi 295 ITR 376 (SC).

Therefore section 44AD does not apply to any profession. Following are some examples of

profession: -



(a) CA/ CS/ CWA

(b) Advocate/ Authorised Representative (including Tax Practitioners)

(c) Engineer/ Architects

(d) Doctor

(e) Religious teaching [CIT vs Abdul Gani Gurdeji 213 ITR 798 (Raj.)]

(f) Politics

(g) Painter or any other artist



Following are some examples of business: -



(a) Trading of goods,

(b) Trading of shares, stocks [CIT vs Lallubhai Nagardas & Sons 204 ITR 93 (Bom.)]

(c) Manufacture/ process of any product

(d) Tailoring

(e) Beauty parlour

(f) Restaurant and Hotel

(g) Money lending

(h) Banking

(i) Commission or brokerage business

(j) Real estate trading and development

(k) Civil construction and ancillary activities

(l) Infrastructure development

(m) Nursing Home

Replies (30)

Thanks for d info sir.

nice sir...

Thanx sir...

thanks 

 

very true picture of sec 44AD

Useful information thanks Sir!!!!

Thanks sir

Thanks for information Sir.

thanks a lot for such a useful form

VERY NICE SIR.                                                              

Sir, what about  Life Insurance Agency.  Whether it is business or profession. If so, on the LIC Commissions they have to pay @ 8% Net Profit  u/s.44AD

Following are some examples of business: -



(i) Commission or brokerage business

Very Nice Analysis Navin Bhai...Keep Sharing....

Very useful information sir.......

hi all...pls let me know the list of leaves (sick leave, encashment leave and vacation leave) available as per statute to employee in a year.....


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