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Query on section 44ada

Himanshu Srivastava (Student CA Final) (31 Points)

15 July 2018

Hello Dear Members,

I have a query... An medical institution registered under section 12AA of Income Tax Act, 1961 is running services of treatment of hearing impaired children and like. The income received as fees and visiting fees of the person treating them should be charged under section 44AD or section 44ADA... Please reply at the earliest... Thank you...

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183191 Points)
Replied 15 July 2018

Fees collected from patients are accounted as per general accounting procedure (sec. 44AD not applicable to institute)

Fees paid to doctors/professionals will be liable to TDS u/s. 194J.

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nikhil (juhjg) (25 Points)
Replied 15 July 2018

No, such medical institutuion can not claim benefit under section 44AD and 44ADA

Himanshu Srivastava (Student CA Final) (31 Points)
Replied 12 August 2018

Sir...

I asked the tax treatment for the staff personnel who treat the patients and visit patients' home... They are just nursing staff and are not qualified medical practitioner... Therefore, can their income tax returns be filed under section 44AD or should it be filed under section 44ADA...?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183191 Points)
Replied 12 August 2018

If they are paid salaries, deduct TDS u/s. 192.

For professionals on (non-salary based) professional charges, deduct TDS u/s. 194J.

Himanshu Srivastava (Student CA Final) (31 Points)
Replied 13 August 2018

Dear Sir,

I'm very much agreed with your answer in that regard... Actually the problem is this, I'm filing the income tax return of these staff personnel... They(2 persons in nos.) are not paid salary rather they distribute the fees collected from patients between themselves... There is also not any kind of written or formal partnership agreement between them....

So the problem is that under which section should I disclose their income and file income tax return accordingly...??

Thanks in advance...

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183191 Points)
Replied 13 August 2018

Better to file ITR3 with books of accounts for professional services rendered.......

Or even sec. 44ADA can be adopted.

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Himanshu Srivastava (Student CA Final) (31 Points)
Replied 14 August 2018

Sir,

Thanks for your concern... I've one more doubt... whether to adopt 44AD or 44ADA because 44ADA can only be adopted by persons who are engaged in professions specified under section 44AA(1)... and these persons are not actually qualified medical professionals, they are just doing job there as nursing staff... so kindly help me in resolving this issue...

Thanks in advance.

Sue Mata (bussiness) (22 Points)
Replied 14 August 2018

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