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Section 44AD of the IT Act

Rohit Kochar (Accounts Ececutive (CA Final)) (30 Points)

20 April 2011

i recently saw a sum in the practice manual of DT issued by ICAI (pg no. 13.54 q/s no. 24).

it is a q/s on presumptive taxation but the assessee is a pvt. ltd. co.

i want to know whether Sec. 44AD is applicable to Cos.?

if yes then please give reason

if no then also explain as to y the institute has solved the problem in that way(applying Sec. 44AD to cos.)

thanks,

rohit

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2 Replies

Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 26 April 2011

Mr.Rohit Kochar

Explanation to Section 44AD ( as substituted by the Finance( No.2) Act, 2009 which comes into force with effect from 1-4-2011 reads as under:

Explanaltion.-For the purpose of this section,-

(a) "eligible assessee" means,-

(i) an individual, Hindu undivided family or partnershjip firm, who is a resident, but not a limited liability partnership partnership firm as defined under clause (n) of sub-section (1) of section 2 of of the Limited Liability Partnership Act, 2008 (6 of 2009); and

(ii) who has not claimed deduction lunder any of sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VIA under the heading "C. - Deductions in respect of certain incomes" in the relevant assessment year;

Now you can come to a conclusion whether this section is applicable companies?

Best Wishes

Sathikonda