Sec 44ad

CA Dipesh Bhupta (Product Controller) (64 Points)

23 October 2012

Hello Friends

Just wanted to confirm whether a govt Civil contractor can be take a advantage of sec 44AD?

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CA. Subhash Dangi (Chartered Accountant) (1784 Points)
Replied 23 October 2012

Yes definitely, a Govt Civil Contractor can take advantage of of Section 44AD.

There is not differenciation between govt civil contractor or private contractor within the meaning of eligible assessee under the Income Tax Act.

Ø Who is eligible assessee?

According to Explanation (a) to Section 44AD, Eligible Assessee means:

i. A Resident Individual,

A Resident HUF,

A Resident Partnership Firm

(But does not include a Limited Liability Partnership as defined u/s 2(1)(n) of the LLP Act, 2008.)

AND

ii. Who, out of the above categories of assessees, has not claimed Deduction during the relevant year;

u/s 10A, 10AA, 10B and 10BA

Deduction under any provision of Chapter VI-A under the Heading “Deduction in respect of certain incomes”.

Ø Thus, it is clear that the definition is exhaustive and it includes only what it expressly means. Hence, all other persons such as -

- Non Resident; Individual, HUF and Partnership Firm

- Company

- Limited Liability Partnership

- AOP / BOI

- Artificial Juridical Person

Are impliedly not covered by the provisions of this section.

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