I am a doctor, a resident Indian working in India at a hospital. I receive professional income via 194 J and file ITR under section 44 ADA.
Now my institution is making an investment abroad. They are providing medical machinery to a hospital abroad and will undertake the running of some departments in that hospital. Obviously they would be getting an income from there. Now my institute is asking me whether I would like to put in a share or to work here for a few days every month. I am planning on working here for a few days here every month. I also plan to invest by providing a scanning machine.... Which I plan to give them for a hire or lease. I would get income for working there. I would get a revenue from the usage of the scanning machine which I would treat as the hiring charges (or leasing charges) of the machine.
I need the following answers:
1) The remuneration I receive for working-class they could still be shown for income tax under section 44 ADA-right?
2) The hiring charges that I would receive in lieu for them using my scanning machine-those could be shown for income tax under 44 AD-right? (if it's presumptive profits that I wish to use)
3) If I could use both 44 ADA and 44 AD in my case in the above scenario, I know, I don't need to maintain book. I don't need auditing. But the query is do I need to have an evidence to show the nature of these two incomes? That is, should I have in hand evidence that one is professional income and the other is business income?
4) What could be the evidence? These things are going to work based on mutual trust between me and my current employer. So I don't really need much paperwork for me to work there. If I stop receiving money one month, I plan to merely pull out and forego the remaining amount-thats what I have in mind.
But for income tax purposes, if I need more papers to prove the business nature of the money (and professional nature of money as the case maybe), I would have to look into it. For that first I need to know what I will need! Please tell me the bare minimum paper-work that would suffice for showing to income tax Dept (if the need arises) !!?
5) Would the above answers change if the country that I plan to go is not a fully recognized country. I can't reveal the name of the country here because i have been told not to by my employer. It's a country like Palestine you could say! Obviously with a country like this, what would suffice as evidence as to the nature of payment. With Indian jobs, you receive payment under 192, 194J etc-which itself is proof as to the nature of remuneration. But what can i rely on here (a hospital in a foreign country would be my employer-my current employer is just a facilitator here)?
CAclubindia
