• Sections 44AD and 44ADA

Hello friends, Can a painter who is an Architect as well claim benefit for any of the sections 44AD & 44ADA for paintings sold. 80% of his gross receipts is from sale of paintings and balance from Architectural fee. Thanks for your advice.
Asked 3 years ago in Income Tax

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

Vivek Kumar Arora
CA, Delhi
4863 Answers
1052 Consultations

5.0 on 5.0

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

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Dear Sir,

 

44ada Defines some Professionals who can opt for the presumptive scheme, one such Profession is Architect. So, Yes you can opt for presumptive Scheme.

 

Thanks & Regards

Shiv Kumar Agarwal

Shiv Kumar Agarwal
CA, Delhi
489 Answers
74 Consultations

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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.

Lakshita Bhandari
CA, Mumbai
5687 Answers
912 Consultations

5.0 on 5.0

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

Naman Maloo
CA, Jaipur
4280 Answers
98 Consultations

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

Ruchi Goel Anchal
CA, Gurgaon
525 Answers
16 Consultations

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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

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

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.

 

 

Payal Chhajed
CA, Mumbai
5188 Answers
291 Consultations

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Yes, your understanding is correct.

Payal Chhajed
CA, Mumbai
5188 Answers
291 Consultations

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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.

Sushma Munoyat
CA, Bangalore
27 Answers
2 Consultations

5.0 on 5.0

Hi

 

Yes you are correct.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

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