Usage of 44 AD

Suppose my mother who is a housewife starts a dental clinic (as owner) and we employ my wife the dentists, can my mother use 44 AD provisons under presumptive taxation?

44 AD is not allowed for a few professions such as plying, agency, commission business etc. It's been made ineligible for persons engaged in professions. But in tha later though it's the persons who have been made ineligible; not the business per se. I have been made aware that tribunals have  generally supported 44 AD usage in such scenario is whereas AO's have sometimes objected.  I don't know the truth behind those statements.  What is the viewpoint or law here?  Please guide!

Replies (3)
Quick Summary
This discussion explores the eligibility of using Section 44AD for presumptive taxation for a dental clinic owned by a housewife, with her wife working as the dentist. While Section 44AD generally excludes professions, the question arises if the business itself is excluded or just the person. The consensus leans towards ineligibility for 44AD for medical professions, suggesting Section 44ADA as a more suitable alternative for presumptive income calculation in such cases.

A dental clinic falls under a medical profession, the mother's dental clinic would not be eligible to use the presumptive taxation under Section 44AD of the Income Tax Act. The mother would need to maintain books of accounts and compute income based on actual profits for tax purposes. 

Why can't my mother use presumptive taxation??

You can opt for Presumptive income under 44ADA which includes medical profession in it. 

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