If a person earning income by playing guitar in bar & restaurant , and TDS is deducted u/s 194J can he file return using Sec 44ADA/Sec 44AD. Please share your views friends
4 Replies
SHIRISH S S
(Proprietor)
(1030 Points)
Replied 17 August 2019
Will not come under ADA. MOST PROBABLY AD
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 17 August 2019
1. There is no definition for the profession as contemplated in income tax. Only certain kinds of work involving intellectual or manual skills which are unique and specific to such individuals are considered as a profession.
2. Moreover, the profession is more of an individual basis, a service which are not common and it requires a certain set of skills which are done by that particular individual alone.
3. Rule 6F of Income-tax rules 1962 specifies "Film Artists" as a profession which also includes music directors and assistant music directors. However, there is no express notification which says playing instruments will be considered as a profession. But if you look at the nature of work (playing guitar) it requires a unique set of skill and talent. Hence it should be considered as a profession and on the other hand, it cannot be considered as business. So that adds more reason to consider 'Playing guitar in a bar" as a profession.
4. In that case presumptive taxation, u/s 44ADA can be opted.
5. However, it would be best if you verify the type of profession specified in IT return for more clarity.
Please correct me if the above interpretation has an alternative view.
Kapadia Pravin
(17259 Points)
Replied 17 August 2019
You will fall under 44ADA
under code 20010 --- Individual Artists
Under this minimum 50% or more of receipts you have to show as income.
under code 20010 --- Individual Artists
Under this minimum 50% or more of receipts you have to show as income.
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