44AD OR 44ADA

[Guest]

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

[Surjeet Singh]

As pr section 44AD on IT Act for computation of income under this section there are three important conditions:

1 Eligible assessee: Individual, HUF and Partnership Firm other than LLP being resident.

2. Eligible business: other than following

i) the business of plying, hiring or leasing goods carriages referred to in section 44AE; or

ii) a person earning income in the nature of commission or brokerage; or

iii) a person carrying on any agency business; and

iv) a person carrying on profession as referred to in sub-section (1) of section 44AA

3. Turnover should not exceed 2 crore rupees.

So, in your case you can compute income of your business under sec 44AD if Turnover does not exceed 2 crores rupees.

For any further tax related queries contact me on 9905126744.

AI Summary

Presumptive taxation under section 44AD may apply to partnership firms operating hospitals if not an excluded profession. Applicability of the presumptive taxation scheme to a partnership firm operating a hospital turns on three conditions: the assessee must be an eligible resident (individual, HUF or partnership firm other than an LLP); the business must not fall within the statutory exclusions including activities treated as professional practice; and gross receipts must not exceed the statutory turnover ceiling. If the hospital activity is not treated as a profession and receipts are within the turnover threshold, the partnership may compute income under the presumptive scheme.