Applicability of sec 44ad or 44ada

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This discussion addresses whether individuals providing 'Other professional services n.e.c.' (business code 16019) can file their Income Tax Returns (ITR) under Section 44AD or 44ADA. Generally, 44AD is for trading and contractors, while 44ADA is strictly for professionals. This raises questions about filing under these sections for code 16019 and the implications for account maintenance and profit declaration, especially for those earning over 20 lakhs annually. The advice suggests filing under ITR-3 and selecting 'other professional income' if 44AD/44ADA aren't directly applicable.

Naveen Kumar Jain

Naveen Kumar Jain (Querist)

03 November 2020 business code Other professional services n.e.c. 16019.

Can ITR be filed under sec 44AD or 44ADA for services rendered under above business code?

Rupesh Jain

Rupesh Jain (Expert)

03 November 2020 44ad for trading and contractor services, 44ADA for professional services only

Naveen Kumar Jain

Naveen Kumar Jain (Querist)

03 November 2020 Does it mean that for those who choose business code 16019 ca not file their return under sec 44AD or 44ADA? Then they have to file under normal provisions. If they do not maintain accounts, then they can indicate profit less than 8%, without audit? If they earn a fee of 20 lakhs annually then do they have to compulsorily maintain accounts and provide P & L account and balance sheet?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

04 November 2020 You have to file itr -3 in that you can able to choose other professional services in other business or professionals

Naveen Kumar Jain

Naveen Kumar Jain (Querist)

05 November 2020 Sir, my query is whether in this case, in ITR3, profit can be shown under sec 44AD 0r 44ADA with choosing accounts not maintained or whether accounts are compulsory required to be maintained and P & L and B/S details have to be provided?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

05 November 2020 You choose one more other than 44ad or 44 Ada you can declare income where you can choose other professional income

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