Comments
I was an accountant in a private company, and after retiring, I rejoined the same firm on a retainership basis (there is no employer-employee relationship). As such, the TDS would be deducted u/s 194J on the professional fee. My academic qualification is BCom. Am I eligible to be covered under the provisions of Section 44ADA of the I-T Act for carrying on the ‘Profession of accountancy’ u/s 44AA(1) even though I am not a chartered accountant?
Lakshmipati
As per the provisions of Section 44ADA of the Income Tax Act, a resident assessee engaged in a specified profession (under Section 44AA) is eligible to be covered under the provisions of Section 44ADA (subject to other specified conditions) for presumptive taxation.
The provisions of Section 44AA of the I-T Act includes ‘Profession of accountancy’. However, it does not specify any qualification for an accountant. Further, Section 288 of the I-T Act defines the term ‘accountant’ (for the purpose of representation) to mean a chartered accountant as defined under the Chartered Accountants Act, 1949 (with certain exceptions). Also, Section 288 of the I-T Act, read Rule 51 of the Income Tax Rules, 1962, includes a commerce graduate under the definition of an accountant.
Additionally, as per the available judicial precedents, the term qualification must be given a wide range with reference to the qualities that are required to be possessed by a person performing the work, so long as the work is capable of being regarded as technical or professional. A person having skill, experience and competence in that line of work can be regarded as a professionally qualified person.
Based on the above, since you hold a degree in commerce, a view may be taken that you should be covered under the profession of accountancy under the provisions of Section 44AA of the I-T Act and hence eligible for presumptive taxation under Section 44ADA. However, the same may be litigated.
Can LTCG arising from land/house transaction be set off against long-term capital loss (LTCL) from share transaction from April 1, 2018, as per the amendment to the I-T Act as per the 2018 Budget proposal?
Joseph John
As gains on sale of listed equity shares or equity-oriented mutual funds (in excess of ₹1 lakh, for sale on or after April 1, 2018) is now taxable under the newly introduced Section 112A, any loss also arising on such sale of listed equity shares or equity-oriented mutual funds is now eligible to be set off against any LTCG from the sale of land/house property of the same assessment year.
The writer is a practising chartered accountant. Send your queries to taxtalk@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.