Sir I provide service of processing paper work of insurance claim in which my client are big insurance companies, I have almost 10 to 15 people staff of mine which prepares paperwork for claim passing, visiting hospitals and submit the same to insurance companies, the insurance companies are deducting tds u/s 94J while paying money for prepairing paper work. However while filling the income tax return I had selected 16015 code and the return was processed u/s 44ad sucessfully. Hope that is correct which I have done? Thanks
- Ask Insurance companies to deduct TDS u/s 194C. Business code should be 21008
- Though the TDS is deducted u/s 194J you can still opt for section 44AD subject to fulfillment of other conditions
For detailed discussion you may opt for phone consultation
Thanks for the reply but actually during paperwork we also do investigation like clicking photos of the patient admitted in hospital and checking reports whether ok or not and than we submit our report to insurance companies, this is to prevent fraud for mismuse of insurance claims
Yes, you can use Section 44AD. Your service is treated as a business, not a profession, even with some investigation work.
Use business code 21008, not 16015.
TDS should be under 194C, not 194J — ask clients to correct this going forward.
Section 44AD applies to business activities—like paperwork, clerical tasks, hospital visits—where presumptive income is 6–8% of turnover. It's valid for turnover up to ₹3 crores, excluding agency or commission-based work
Section 44ADA is meant for professional services (doctors, technical services, fraud investigation, etc.), allowing you to declare 50% of your receipts as income, available up to ₹50 lakh turnover
Since you are conducting investigation and anti-fraud work—services requiring professional skill—that aligns with the definition of "profession" under Section 44AA(1) and is consistent with Section 44ADA .
Conclusion :
Given that your services now include photographing patients, reviewing medical reports, and fraud investigation work, the nature of your work shifts significantly toward professional services, not just paperwork. That may change your presumptive taxation eligibility:
Your work is professional, not just clerical, due to fraud investigation.
Filing under Section 44ADA is more appropriate than 44AD.
Continue with 194J TDS; do not request 194C unless insurers treat it explicitly as a contract.
You’ll likely have higher tax under 44ADA (50%) than 44AD (6–8%), but it’s legally safer and aligns with your operations.
Precise reply would depend on the terms and conditions, clauses mentioned in the contract between you and insurance companies
You can share copy of agreement at aroravivek1982@gmail