Upgrad LLM

section 44ad


WE ALL KNOW THAT SECTION 44AD APPLIES TO ANY BUSINESS (IN CASE OF RESIDENT INDIVIDUALS, HUFS OR FIRMS)WHERE THE TOTAL TURNOVER OR GROSS RECEIPTS DO NOT EXCEED RS.60 LAKHS DURING A YEAR.

NOW MY QUESTION IS WHETHER AN INDIVIDUAL CARRYING ON THE ACTIVITY OF LIC AGENCY BUSINESS IS ELIGIBLE TO TAKE THE BENEFIT OF SECTION 44AD ON HIS COMMISSION EARNED .

 
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Lawyer

Sec 44AD apply to assesses engaged in the Business of Civil Construction LIC business is not covered by this section.

 

Section 44AD prescribes a method of presumptive taxation for assessee engaged in the business of civil construction or supply of labour for civil construction in which a sum equal to eight percent of the gross receipts is deemed to be the profits and gains from business. 

 
 
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Thank you Mr. Sanjeev for your valuable reply.

Mr. Sanjeev I have gone through the section in brief, but this is clear that Section 44AD applies to other businesses as well besides civil construction. Such businesses may be any trade ( Whether retail or wholesale),the only exclusion is for the business of plying ,hiring or leasing goods carriages covered u/s 44AE.
 In fact the word "eligible business" have been specified in the section. Now my querry is whether LIC agency business comes within the category of eligible business.

 
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Lawyer

No this apply to Construction business only

 
Reply   
 

LIC insurance commission income is not covered as Profession.It is non profession Income, you may show net income more than 8%.But it is better to prepare Books of Accounts. You may use 4S for Income tax Refund.


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