Section 44AD of the IT Act

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Rohit Kochar

Accounts Ececutive (CA Final)

30 Points Joined February 2011

i recently saw a sum in the practice manual of DT issued by ICAI (pg no. 13.54 q/s no. 24).

it is a q/s on presumptive taxation but the assessee is a pvt. ltd. co.

i want to know whether Sec. 44AD is applicable to Cos.?

if yes then please give reason

if no then also explain as to y the institute has solved the problem in that way(applying Sec. 44AD to cos.)

thanks,

rohit

Replies (2)

Anumanchipalli Sathikonda

Tax Consultant

1559 Points Joined June 2009

Mr.Rohit Kochar

Explanation to Section 44AD ( as substituted by the Finance( No.2) Act, 2009 which comes into force with effect from 1-4-2011 reads as under:

Explanaltion.-For the purpose of this section,-

(a) "eligible assessee" means,-

(i) an individual, Hindu undivided family or partnershjip firm, who is a resident, but not a limited liability partnership partnership firm as defined under clause (n) of sub-section (1) of section 2 of of the Limited Liability Partnership Act, 2008 (6 of 2009); and

(ii) who has not claimed deduction lunder any of sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VIA under the heading "C. - Deductions in respect of certain incomes" in the relevant assessment year;

Now you can come to a conclusion whether this section is applicable companies?

Best Wishes

Sathikonda