Any resident individual; resident Hindu Undivided Family and resident Partnership Firm (not LLP) whose total turnover/ gross receipts for the year don’t exceed INR 2 Crores are eligible to opt for the presumptive taxation scheme covered u/s 44AD of the Income Tax Act.
Notably, presumptive taxation scheme u/s 44AD is applicable to all the businesses except the following listed ones –
1. Business of plying or hiring or leasing of goods;
2. Agency business;
3. Business earning income either from Commission or Brokerage;
4.Professions as referred under section 44AA(1) [i.e., legal profession; medical profession; engineering profession; architectural profession; accountancy profession; technical consultancy profession; interior decoration profession or any other notified profession].
For ready reference, the following table summarizes the list of businesses/ professions, along with the relevant ITR business code, who cannot opt for presumptive taxation scheme u/s 44AD –
| List of Businesses/ professions who cannot opt u/s 44AD | ITR business code |
| Computer and related services | |
| Software development | 14001 |
| Other software consultancy | 14002 |
| Data Processing | 14003 |
| Database activity and distribution of electronic content | 14004 |
| Other IT enabled services | 14005 |
| BPO services | 14006 |
| Maintenance & repair of office, accounting and computing machinery | 14008 |
| Health Care Services | |
| General hospitals | 18001 |
| Speciality and super speciality hospitals | 18002 |
| Nursing homes | 18003 |
| Diagnostic centres | 18004 |
| Pathological laboratories | 18005 |
| Medical clinics | 18010 |
| Dental Practice | 18011 |
| Ayurveda Practice | 18012 |
| Unani Practice | 18013 |
| Homeopathy Practice | 18014 |
| Nurses or physiotherapists or other para-medical Practitioners | 18015 |
| Veterinary hospitals and practice | 18016 |
| Medical education | 18017 |
| Medical research | 18018 |
| Practice of alternative medicine | 18019 |
| Other healthcare services | 18020 |
| Professions | |
| Legal profession | 16001 |
| Accounting, book-keeping and auditing profession | 16002 |
| Tax consultancy profession | 16003 |
| Architectural profession | 16004 |
| Engineering and technical consultancy | 16005 |
| Fashion designing profession | 16007 |
| Interior decoration | 16008 |
| Photography profession | 16009 |
| Business & management consultancy activity | 16013 |
| Culture and sport | |
| Individual artists (excluding authors) | 20010 |
| Literary activity | 20011 |
| Other cultural activities | 20012 |
| Others | |
| Secretarial activities | 16018 |
| Medical profession | 16019 |
| Film artist | 16020 |
| General Commission Agent | 9005 |
Author Bio
Hi Please let me know if a Recruitment firm offering HR recruitment services to clients can opt for Presumptive taxation under Sec 44AD (i.e. 6 percent) where the turnover is less than 50 Lakhs?
hello sir/ma’am,
Is a accountant show is income in B & P (16002 code)?
Your Blog creates a lot of confusion, Professionals can opt presumptive scheme if their turnover is upto 75 lakh. Please correct your blog or change the wordings. So many phone calls received due to your this blogs.
Sandeep Kanoiji is talking about s44 AD in the article. Nayakji, you are referring to s44ADA.
You have provided all the ITR codes in the table and mentioned that Sec 44AD is not applicable to them.
But I think it should be read as “applicable” because only the following are excluded from Sec 44AD – plying, hiring, agency, commission, brokerage etc.
Please correct else it is highly misleading
Seems correct to us
Hi
Please let me know if a Recruitment company offering permanent hiring support to clients can opt for Presumptive taxation under Sec 44AD where the turnover is 40 LPA.