Section 44AD Computing profits & gains of business on presumptive basis

• December 14, 2020
• CA Chandan Agarwal's Office

A. Meaning of terms used in section 44AD(1)

To understand the provisions of sec 44AD(1) of the Act, we must study the meaning of following terms:

1. Eligible assessee:

1) Resident Individual

2) Resident Hindu Undivided Family

3) Resident Partnership Firm (not a Limited LiabilityPartnership Firm as defined under LLP Act, 2008)

Note: While explaining the meaning of eligible assessee, a rider also provided in Explanation (a) to Sec. 44AD for eligibility i.e.

NON – ELIGIBLE ASSESSEES UNDER SEC. 44AD

Explanation (a) to sec. 44AD provides the following arenot covered under these provisions:

Read more on: https://taxguru.in/income-tax/section-44ad-computing-profits-gains-business-presumptive-basis.html