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make up artist tax return

16 July 2018

client is make up artist and has a set up at home for make up similar to beauty parlour.lot of materials are purchased for doing the job.also freelance is done for bride makeup at clients place. approx turnover is 14 lacs and approx profit is 5 lacs. no bills n books. can we use section 44AD and ITR 4 and declare presumptive profit approx 35%.

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RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 16 July 2018

Yes... You can opt sec 44AD.

***According to Section 44ADA of Income Tax Act, 1961, Presumptive Income at the rate 50% of the Gross receipts of a profession shall be deemed to be the Income from that Profession.

Profession has been defined as Any person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorised representative or film artist.

Since the Beauty Parlour does not fit anywhere in the above category, the Income from Beauty Parlour can be assessed based on Section 44AD of Income Tax Act, 1961, which states that when the Turnover of the Business is less than or equal to Rs. 2 Crores, the assessee can pay tax on Presumptive Income which shall be not less than 8% (or 6% for that part of Turnover received by A/c Payee Cheque or A/c Payee Bank Draft or Electronic Clearing System) of Turnover from such business.

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S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 16 July 2018

Yes...I agreed to Mr RAJA P M SIR.

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RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 16 July 2018

But,
As per the query and it's head of the query...
The Asseessee is performing as Make Up Artist then He can file u/s 44ada...

Otherwise if he doing it as Beauty Parlour business then he can avail presumptive taxation scheme sec 44AD.

Gaurav Palta (484 Points)
Replied 16 July 2018

Thanks guyz
But one thing section 44ADA does not cover any such profession like makeup artist.How can this section be applied? I think only section 44AD is applicable.

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 17 July 2018

Notified Professionals u/s 44ada:

Persons engaged in any of the following professions:

Legal

MedicalEngineering

Architecture

Accountancy

Technical consultancy

Interior decoration

Authorized representatives

Film Artists***

Certain sports related persons

Company Secretaries and

Information technology

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Gaurav Palta (484 Points)
Replied 17 July 2018

Thanks RAJA PM but make up artist not covered anywhere in Section 44 ADA. Film artist section covers only people related to cinematography.correct me if i am wrong.Film artist means any person engaged in his professional capacity in the production of a cinematograph film, whether produced by him or by any other person, as --

(i) an actor ;

(ii) a cameraman ;

(iii) a director, including an assitant director ;

(iv) a music director, including an assistant music director ;

(v) an art director, including an assistant art director ;

(vi) a dance director, including an assitant dance director ;

(vii) an editor ;

(viii) a singer ;

(ix) a lyricist ;

(x) a story writer ;

(xi) a screen-play writer ;

(xii) a dialogue writer ; and

(xiii) a dress designer.

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