Regarding section 44ad

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2012 plz advice me about section 44AD, whether it cover all professions. if no plz mention about that profession

CA Tousif Ahmed

CA Tousif Ahmed (Expert)
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07 July 2012 Sec.44AD is not applicable to
a person carrying on profession as referred to in sec.44AA(1)
or
a person earning income in the nature of commission or brokerage,
or
a person carrying on any agency business

Professions referred in Sec. 44AA(1) are Legal, Medical, Engineering or Architectural profession or the profession of Accountancy or technical consultany or interior decoration or any other profession as may be notified by the Board in the official gazette

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2012 it means it doesn't apply to professions. but whether the person having brokership and sub brokership earning income through brokerage & commission is covered in eligible business u/s 44AD.

plz also tell me about eligible business u/s 44AD

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Querist : Anonymous

Querist : Anonymous (Querist)

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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09 July 2012 Section 44AD has been retrospectively amended w.e.f AY 11-12 to provide that the benefir of Section 44AD is NOT applicable to agency or commission income.

Eligible business means any business except the business covered u/s 44AE.

However, professionals and agency or commission business is NOT covered u/s 44AD.

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2012 Stock and share broking and dealing in shares and securities -
CIT v. Lallubhai Nagardas & Sons [1993] 204 ITR 93 (Bom).
this is reference of case which is covered u/s 44AD. this is also covered in eligible business. plz advice.

my client is rendering repair services of machinery n i want to apply section 44AD n what about its code for nature of business