Presumtive Taxation for Non Specified Profession

[chetan jadhav]

Dear All,

I am aware that, for professional [specified u/s. 44AA(1)] ie CA, doctors, Lawyers we can opt for presumptive taxation u/s 44ADA by offering 50% of gross receipt as taxable income.

My query is -

There are certain other professions which are not specified u/s44AA(1) such as sport coaches or qualified Teacher (who undertakes tutorial), Marketing advisor, Freelancers.

Particularly, in case of sport coaches, as per NOTIFICATION NO 88/2008, TDS shall be deducted u/s194J, as activities of coaches would fall under professional services for the purpose of 194J. however the same is not covered u/s 44AA(1).

My query is since we can not opt for 44ADA for such Non Specified professions, Can we opt under section 44AD and offer income @ 8% or higher as the case may be.

Grounds for opting u/s 44AD -

1. 44AD specifically says, it is not applicable to Specified Profession. (specific provision shall prevail over general provisions)

2. section 44AD covers within its ambit Turnover as well as Gross Receipt. Gross Receipt is normally associated with service or professional activities.

Grounds for not opting u/s 44AD and filling normal return-

1. section 44AD says income from business (and not business or profession). In other provisions of the act, like section 44AA(2), it says business or Profession.

Kindly advise.

[DR.MARIAPPAN GOVINDARAJAN]

If your business comes under the category of 'eligible business' you can avail it.

[TANAY GHILDIYAL]

Hello hope are doing well.

You can adopt Sec 44AD and treat ur sports coaching services as business Income. Its business of providing Coaching Services.As per Sec 44ADA sports Coach are not covered as professionals so go for Sec 44AD

For further Tax related issues you can contact me Tanay Ghildiyal - 9873938771

AI Summary

Presumptive taxation for non-specified professions allowed when services qualify as business income under eligible business rules. Whether non-specified professions (e.g., sports coaches, tutors, freelancers) can adopt the business presumptive regime depends on characterisation of the activity as an eligible business. Grounds for adopting include the business provision covering gross receipts and a specific exclusion for specified professions; opposing grounds rest on the provision referring to business rather than business or profession. Respondents advised that if the activity qualifies as an eligible business, it may be treated as business income and the business presumptive regime may be adopted.