Technical Consultant u/s 44ADA

Is technical consultant defined in act or rules?
- As per sec 44ADA with 44AA(1)

Technical services
As per income tax rules, ‘fees for technical services’ means managerial, technical, and consultancy services but does not include payments considered as Salary by the recipient of such income.

One can define technical services as providing services that involve technical expertise or expertise in technology.
The scope of managerial services can be defined as running and management of the business of the client.

Consultancy services can be understood as advisory services wherein necessary advice and consultation are given to the clients for their business.

As per the Supreme Court’s judgment, technical service would include services provided by a human. It would not have any service provided by machines or robots.



(I can't understand this question)

can PF & ESIC be said as Technical Consultant for the purpose of section 44ADA?

Labour consultant who is not recognised by any governing body provides consultancy services in respect of PF & ESIC to their clients.

can it be said as Technical Consultant?
if yes they have choose 44ADA & if no then they have option to choose 44AD

You are confused with Professional services and Technical services.

As You said above it's can be consider as professional services 

Can they opt for 44AD

Originally posted by : CHANDRAMOHAN
	Can they opt for 44AD

No... It's not a business income.

But they are not specified professional u/s 44AA then why they can't

Bcoz, this is not business. So, can't under 44AD. The service is professional services...