Vinod (CA in Practice) (445 Points)
30 November 2011Sec44AD of the Income Tax Act provides that "Individual, HUF, Firm carrying on any business other than plying....u/s 44AE" .
So my doubt is whether the following business are covered by 44AD ?
1. Manufacture of Industrial Parts
2. Financing business run by an individual.
Also, another doubt: Educational institution falls under which catagory for the purpose of Sec 44AB ? Business or Profession ? (ie. monitary limit is 60 L or 15 L) ?
Please advise.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 30 November 2011
Following are the answers to your above questions:-
1. Section 44 AD is applicable for manufacturing of Industrial Parts Business.
2. Also applicable for Financing Business run by an Individual.
3. As per my knowledge, Educational Institutions are formed as Trusts and are not covered by Section 44AB or 44AD.
Regards,
Devendra Kulkarni
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 30 November 2011
i think both of the business are covered under 44ad.
further in my opinion Education institutes shall fall under business. in addition status of Educational institute shall also be considered. for example in case where educational institute registered as a Trust then such Education institute is liable to Audit its BOA if its income exceed exemption limit irrespective of amount of Receipt.
Regards
Madhusudan
CAclubindia
