15 July 2018
In the Clarifications given by Income Tax Department regarding Tax on Presumptive basis, following are mentioned at link https://www.incometaxindia.gov.in/tutorials/13.%20tax%20on%20presumptive%20basis%20in%20case%20of%20certain%20eligible%20businesses.pdf
One
A person who is engaged in any profession as prescribed under section 44AA(1) cannot adopt the presumptive taxation scheme of section 44AD.
As per Section 44(1)mentioned at one above, such professions are legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette
Two
:The presumptive taxation scheme of section 44ADA is designed to give relief to small taxpayers engaged in specified profession.
Three
A person resident in India engaged in following professions can take advantage of presumptive taxation scheme of section 44ADA:- 1) Legal 2) Medical 3) Engineering or architectural 4) Accountancy 5) Technical consultancy 6) Interior decoration 7) Any other profession as notified by CBDT
NOW THESE PROFESSIONS ARE SAME AS MENTIONED IN SECTION 44(1)
SO KINDLY CLARIFY AS TO WHY iNCOME tAX dEPARTMENT has said, as mentioned in one above that
"A person who is engaged in any profession as prescribed under section 44AA(1) cannot adopt the presumptive taxation scheme of section 44AD".
HERE REFERENCE OF SECTION 44AD IS GIVEN FOR PROFESSION WHEREAS FOR PROFESSION SECTION 44ADA HAS BEEN ADDED.
15 July 2018
Apart from above discussed businesses, a person carrying on profession as referred to in section 44AA(1) is not eligible for presumptive taxation scheme. Please see page-2 ( Businesses not covered under ............................44AD) of the link which may be for clarity.
16 July 2018
Sir, on page two, businesses are mentioned where as my query is about SPECIFIED PROFESSION only.
While at one Place it is stated that A person who is engaged in any profession as prescribed under section 44AA(1) cannot adopt the presumptive taxation scheme of section 44AD. on the other hand it is stated that :the presumptive taxation scheme of section 44ADA is designed to give relief to small taxpayers engaged in specified profession.. The specified profession mentioned in 44ADA are the same as mentioned in Section 44AA(1).
Thus two contradictory statements have been made about Specified Profession. In one statement, presumptive scheme cannot be adopted for such professions and in the other statements it is stated that presumptive scheme can be adopted for such specified professions.
28 September 2021
In one statement, presumptive scheme cannot be adopted for such professions i.e. u/s. 44AD (for any business related activity) .... and in the other statements it is stated that presumptive scheme can be adopted for such specified professions u/s. 44ADA (for the specified professional income) ...
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