I, Mr Ashok P Choudhary doing practice since last 15 years in the area of Income Tax returns, VAT and account writing. But still I could clear my CA final 1st Group. I have completed GMCS Course in 2010. Now I have to file my Income Tax return for AY 2018-19. What will be my nature of profession or business? Can I file under presumptive basis return @ 8 % as business or I should file @ 50% as professional u/s 44AD / 44 ADA.
Kindly guide with something supporting so that justify my Return with income Tax Dept in case of any query.
As per 44AA of Income Tax Act profession includes profession of accountancy, but the term profession of accountancy nowhere clearly defined and no case law is there for interpretation.
On the other hand if we look at section 44AD, eligible business covers all kind of business except the business of plying, hiring or leasing goods carriages referred to in section 44AE. thus your business in also eligible u/s 44AD.
In my opinion you can file presumptive basis return u/s 44AD. And you can justify it before the income tax authorities as well,if there is a query.