Sections 44AD and 44ADA

- Yes you can claim benefit u/s 44AD if the gross receipts is less than Rs.1 cr.

Hi

Yes you can opt section 44 AD.

Eligibility Criteria to avail the Benefits of Presumptive Taxation Scheme under Section 44AD

Below are the types of tax assesses who can adopt the provisions of presumptive taxation scheme Under Section 44AD :

• Resident Individual tax payers
• Hindu Undivided Families
• Partnership Firm (except LLP or Limited Liability Partnership Firm)

Below conditions are to be satisfied for adopting presumptive taxation scheme under Section 44AD of the Income Tax Act:

• The firm or individual’s gross receipt or annual turnover in the previous year should not have exceeded Rs. 2 crores

For architectural income, he can claim 44ADA and for paintings he can claim 44AD.

Further, we need to understand this in detail to guide you whether to go for presumptive scheme or to opt a normal scheme.

Architecture income can be shown under 44ADA and income from sale of painting should be shown under 44AD as same won't be covered under 44ADA.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

You will be covered under Sec 44ADA as architectural services is a profession and not business.

Hello,

Income from Architectural Services can be declared u/s. 44ADAand for sale of paintings 44AD can be claimed.

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Dear Sir,

Hope you are doing well !!

Yes, he can take the benefit u/s 44ad for income from paintings & income from architectural can be shown u/s 44ada.

Yes, your understanding is correct.

Painting and selling those are in the nature of Business Business is an economic activity concerned with the 
production or purchase and sale of merchandise and rendering of services with the purpose of earning profit. 
Even though paintings require special skill and expertise but here there is a trade in mercandise or Goods with a motive to earn profits.

Hi

Yes you are correct.