Query on sec 44 ad

Tax queries 1259 views 8 replies

Is Section 44 AD is applicable to Profession as well or for only Business?

 

Replies (8)

sec 44ad is applicable on to business and not professional

No

sec.44AD does not cover profession.

It only covers Business Income

Section 44 of income tax covers only business, not profession 

From Assessment year 2011-12, a new section 44Ad has been inserted inthe Income-tax Act to replaceexisting sec.44AD .
The new Section will be aplicable to any business ( whether it is Retail trade,or Civil construction or any other business).
The provisions of the new Section will be applicable if the following conditions are satisfied:
1.Assessee eligible for the purpose of this Section has to be an Individual/a HUF/a Partnership Firm( not being a LLP);
2.The assessee has not claimed any deduction u/s.10A,10AA,10B,10BA,80HHto 80RRB in the relevant Assessment Year;
3.he is not engaged in the business of plying,hiring,or leasing goods carriages referred to u/s. 44AE; and
4. Total Turnover/ Gross Receipt of the Assessee in the previous year should not exceed Rs.60.00 lakhs.

If Assessee is engaged in more than One Business And If the total Turnover for both business exceeds 60 lakhs then he liable to audit  u/s 44AB

Sec.44AD covers business income only.

YES I AGREE WITH ALL ABOVE

If a person is having business income from lic commission then can he get his income to be computed u/s 44 AD on presumtive basis...?


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