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.

AI Summary

Can Sports Coaches and Freelancers Use Presumptive Taxation Under Section 44AD Instead of Section 44ADA? A participant in a discussion forum inquired about the applicability of presumptive taxation for professions not specified under section 44AA(1), such as sports coaches, teachers, marketing advisors, and freelancers. They questioned whether these professions could opt for section 44AD, which allows offering income at 8% or higher, as opposed to section 44ADA, which is not applicable to them. Responses suggested that if the business qualifies as an 'eligible business,' section 44AD could be adopted, treating services like sports coaching as business income, since section 44ADA does not cover these professions.