Meaning of eligible business for 44ad

Tax queries 1323 views 6 replies

Lakshmi Devanand, FCA

Proprietor -Lakshmi Devananda & Associat

106 Points Joined April 2011

Dear friends,
Prior to 2011 only construction business was covered u/s 44AD, However the same has been amended w.e.f 1.4.12 to include all business except plying, hiring and leasing of trucks (covered under 44AE) and profession (covered under 44ADA).

Is apart from above business any other business is not covered u.s 44AD. Please clarify.

Now, my query is if an assessee is doing mounting job/work which is towards labour work (mounting of advertisement board etc.,) can he declare his income on presumptive basis.

Lakshmi Devanand

Replies (6)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208475 Points Joined July 2016

"Is apart from above business any other business is not covered u.s 44AD. Please clarify."

1. A person who is carrying on any agency business.

2. A person who is earning income in the nature of commission or brokerage

Apart from above businesses, a person carrying on profession as referred to in section 44AA(1), also any NRI, LLP, Firms etc. not eligible for presumptive taxation scheme.

Yes, the labour contractor can be assessed u/s. 44AD

Lakshmi Devanand, FCA

Proprietor -Lakshmi Devananda & Associat

106 Points Joined April 2011

Originally posted by : Dhirajlal Rambhia
	"Is apart from above business any other business is not covered u.s 44AD. Please clarify." 1. A person who is carrying on any agency business. 2. A person who is earning income in the nature of commission or brokerage Apart from above businesses, a person carrying on profession as referred to in section 44AA(1), also any NRI, LLP, Firms etc. not eligible for presumptive taxation scheme. Yes, the labour contractor can be assessed u/s. 44AD

Lakshmi Devanand, FCA

Proprietor -Lakshmi Devananda & Associat

106 Points Joined April 2011

Thanks a lot for your clarification.

However in your reply, you have mentioned as firms are not eligible. I guess only LLP, AOI, BOI, Companyies are not eligible. P.ship firms are covered under presumptive income section.

Thanks.

Rajat Aggarwal

Chartered Accountant

80 Points Joined August 2016

Yes,Partnership firms are covered under section 44AD.

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

I too agree with Rajat

CA. SANDIP

Chartered Accountant

86 Points Joined August 2011

Also Note that once you file return under 44AD and if you opt out in next year or in future year than from that year you can not again choose 44AD to file the return for Next 5 years.