By furcation of income in between sec 44Ad and 44ADA of itr 4

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can anyone please clear it that professional rcpt from other clinic is taken to 44ada and income from own clinic is taken to 44ad in itr 4????

Replies (12)

Clinic is run by doctors........ who are specified professionals as per sec. 44AA.......

Any professional income as specified under the sec. is eligible for sec. 44ADA under presumptive assessment.

While any business income (and not specified professional income) is eligible for sec. 44AD.

sir ,  it is like that 7 months dental professional rcpt by working in other clinic and 4 months business income from running own dental clinic....     so professional rcpt in 44ADA and business income in 44AD ???

@ priyatambika.,

What is the business in your view as per Your query?
@ priyatambika 7 months dental professional receipt by working in other clinic that means he had earned money as like a employee it not be a professional income and other 4 month he had earned his owned clinic that means the income is professional income. it is put in 44ADA

the assesee had started own private dental clinic and run for four months from dec 17 to march to march 18, before working five months in other private dental clinic from apr 17 to aug 17..    i here just want to know that oen cinic business income will come in sec 44ad or in sec 44ada...coz though it is a business but medical service are provided??

@ saumen manna , the payment was taken as 30% of revenue and not as employee but it minimum amout around less than thirty thousand...... but even though it would had rcvd as salary it will be a professional rcpt coz the tds on these professional incomes are deductible under a different sec 194 j..

Above said incomes not covered under Business head...

Both will be treat under professional head...

Deduction. u/s 194 j is treated as professional , if 26as total of 194j and 44 ADA rows no not match, you will get mismatch notice. 

So in all 194 j cases its better to calculate the income as professional income under 44ADA and not 44AD. 

Though the currenct situation is some professionals that are not included in the list of professionals under 44 ADA are not clear on this issue, for example anyone offering coaching services may have deductions under 194j but is not under the list of professions prescribed for 44 ADA; similarly many IT professionals run business of supplying SaaS. This is grey area that the Govt should clarify immediately 

@ raja p m,,, are you sure coz yesterday while filling the return , i have put both incomes in sec 44ADA...??..  why anwer differs here on ca club??          here you could see there are three types of answers of one q...

No more confusion above said Income...

* The self practice income is professional income.

** The salary income also professional head. In case TDS deducted u/s 194J then no need different profit percentage. Show it in presumptive scheme u/s 44ada...

In case TDS deducted salary head then the salary income don't be calculate under professional income. Just will be shown salary head...

(why anwer differs here on ca club?? here you could see there are three types of answers of one q...)

No dear...

Your query got exact reply from Our Great Experts Mr Dhirajlal Rambhia Sir.

You just see the reply once again and understand the answer....

yes he is undoubtedly great.. no confusion in it...  i always trusted his anwers without any blinking of eyes...

 i could not get his last line ,thats why i asked him again...but you are right... i read it again when you said this to me..and i got it ...he said "'any business income (and not specified professional income) is eligible for sec 44ad... now i got it... it means every income of specified profession will go in sec 44ada..means my confusion other dental clinic income and own dental clinic income will go u/s 44ada...

and no tds had been deducted on other dental clinic income..


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