44AD OR 44ADA

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WHETHER A PARTNERSHIP FIRM ( 1PARTNER IS NOT A DOCTOR) RUNNING A HOSPITAL WILL BE ELIGIBLE FOR 44AD?

AI Summary

Can a Hospital Partnership with Non-Doctor Partner Use Section 44AD for Tax? Eligibility Explained. A query was raised about whether a partnership firm, with one partner not being a doctor, running a hospital is eligible for tax computation under Section 44AD of the Income Tax Act. The response clarified that Section 44AD applies to eligible assessees, which include individuals, Hindu Undivided Families (HUF), and partnership firms, excluding LLPs. The business must not fall into certain categories such as commission-based businesses or professions listed under Section 44AA. Additionally, the firm's turnover should not exceed 2 crore rupees. If these conditions are met, the firm can compute its income under Section 44AD.