Sec 44ad - presumptive income professional and other busines

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2016 A doctor earns professional income and records fee charged. Under new provisions for AY 2017-18 he can opt for presumptive income @50% of gross fee, as his gross fee receipts are only around 10 lakhs.
He also has a dispensary and dispenses medicines to his patients only for which he charges separately. On gross receipts from dispensary he is allowed to presumptive income @ 8%.. Normally his gross receipts for medicines are around 15 lakhs.
In ITR 4 or 4S, there is no provision to declare separate incomes - gross receipts and net income - for 2 separately - like income from profession and income from business. So how does he report these and computation of income from the two on presumptive basis? Please advise.

Rupesh Jain

Rupesh Jain (Expert)
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20 May 2016 its better to maintain the books of accounts. otherwise you have to take total receipts for that 44ADA and margin for medicine noramly less than 50%.
for presumptive 4S otherwise Form 4 to be used for return filing.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 May 2016 Provision will be made in the new form for AY 2017-18 for declaration of two presumptive incomes.

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Naresh Dharia F.C.A.

Naresh Dharia F.C.A. (Expert)
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20 May 2016 It is advisable to maintain the books of account and show the actual profit, may be less than 10%, and get the books audited by C A ...

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