• Special provision & General provision

I need answer to the following to file my ITR. 

Please give me a decisive & clearcut answer & I humbly request you to cite your source too. 

Question:

Section 44ADA of the Income tax act is classified as a special provision. This is clearly written in the Act. 

What is the status of section 44AA of the Income tax act? Is it a general provision or a special provision?

Once again I request you to give me a clear cut answer. And cite your source too. 

Thank you very much.
Asked 4 years ago in Taxation

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9 Answers

Hi,

It is made clear that section 44AA is a special provision and may be read with rule 6F. The bare reading proves it

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Sir the 44AA of the income tax act is the normal provision read with rule 6 those who don't opt for the scheme under 44AD and 44 ADA provides computation of income under presumptive income. Those who don't opt for this special provision made has to be normally under 44AA has to mandatory maintain books of accounts.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Section 44ADA is inserted with effect from financial year 2016-17 and deals Special provision for computing profits and gains of profession on presumptive basis for Certain professionals referred to in section 44AA(1) of the Income Tax Act whose total gross receipts from profession does not exceed Rs. 50 lakhs in a financial year.

Ajay Sethi
Advocate, Mumbai
87976 Answers
6207 Consultations

5.0 on 5.0

Hello,

The following the small gist of Section 44ADA (For Small Professionals)

Section 44ADA was introduced for small professionals with the objective to simplify taxation, reduce compliance burden and facilitate the ease of doing business for certain small professionals. It also aims at bringing parity between small businesses who enjoy Presumptive Taxation Scheme under Section 44AD and small professionals.

The below-mentioned professions can avail benefits of Presumptive Taxation Scheme under Section 44ADA:

Engineering

Legal

Architectural profession

Accountant

Medical

Technical consultant

Interior business

Since the same has been introduced for the special class of people and therefore it will be treated as a special provision. There is no section which defines something as special or general, these interpretation is done from the jurisprudence.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Section 44AA prescribes the persons who are mandatorily required to maintain books of Accounts for Income Tax purposes. As per Section 44AA, any person carrying on any of the following professions is required to maintain books of accounts:-

Legal

Medical

Engineering

Architectural

Accountancy

Technical Consultancy

Interior Decoration

Any other profession that may be notified by CBDT in future

It would be general provision

Ajay Sethi
Advocate, Mumbai
87976 Answers
6207 Consultations

5.0 on 5.0

Section 44ADA was introduced for small professionals with the objective to simplify taxation, reduce compliance burden and facilitate the ease of doing business for certain small professionals. It also aims at bringing parity between small businesses who enjoy Presumptive Taxation Scheme under Section 44AD and small professionals.

In case of a person adopting the provisions of section 44ADA, income will be computed on a presumptive basis, i.e. @ 50% of the total gross receipts of the profession. In other words, total gross receipts from profession should not exceed Rs 50 lakh for a financial year.

The below-mentioned professions can avail benefits of Presumptive Taxation Scheme under Section 44ADA:

Engineering

Legal

Architectural profession

Accountant

Medical

Technical consultant

Interior business.

Section 44AA prescribes the persons who are mandatorily required to maintain books of Accounts for Income Tax purposes. As per Section 44AA, any person carrying on any of the following professions is required to maintain books of accounts:

Engineering

Legal

Architectural profession

Accountant

Medical

Technical consultant

Interior business.

In case of a newly set up profession or business the same rule applies when income is expected to be more than Rs 1,20,000 or sales/turnover/gross receipts are expected to be more than Rs 10,00,000. Businesses covered under section 44AD and 44AE are not required to maintain any books of accounts.

From the above it can be seen that section 44 ADA is a special provsion and the section 44 AA is a general provision.

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

Shall we assume it is a general provision?

I ask because there is a supreme court ruling that special provisions will override general provisions in case of any confusion. Possibly there are many rulings that suggest the same.

Section 44 AA of the IT act is coming under general provision of law.

You are right that the special provisions will have over riding effect on the general provision on the same subject

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

Yes 44AA is general and mandatory provision a special scheme is made under section 44AD , yes the special provision will always override the general provision in case you are eligible for 44AD in that case 44AA is not applicable and you will get the benefit.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear

It is true that special provisions alwayys override general provisions but 44AA is not a special provision.

Adv vikas

Vikas Khatri
Advocate, Delhi
179 Answers

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