1.A person who is a free lance journalist, a tutor, an instructor running hobby work shops, a contract employee - will they be covered under Trade/ business or Profession? Can they exercise option under 44AD or 44ADA or not at all?
2.As per my understanding these persons are not covered as professionals as defined in sec 44AA. So if they are not professions, will they come under Trade and can be covered u/s 44AD? Or are they covered neither under 44AD nor 44ADA and can not opt for presumptive income?
3.In case they can not opt for presumptive income, will they be required to maintain proper books of accounts, if their turn over exceeds 10 lakhs, and work out their income as per profit and loss account for ITR purpose? If the profit so arrived at is less than 50% of gross receipts, or results in loss, will they be required to get tax audit done? Or audit will be required only if their gross exceeds 50 lakhs?
Kindly give your opinion.
Read more at: /experts/presumptive-income-2463769.asp
CAclubindia
