44AD OR 44ADA, Income Tax

[Pathy Senthil]

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

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[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.

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