Question ID :
44903
Section 44AD and section 194J
A partnership firm engaged in computer program such as python, C++ coaching is an authorised franchisee. It gave software coaching to any person and its teachers are not professionals i.e. qualified teachers. It admitted income under section 44AD. The company collected fees and paid 50% to the assessee-firm as its share for every student and deducted tax @2% as technical charges. Now the AO says the gross receipt of the firm is taxable under sectionm44ADA and not under section 44AD. Is he justified?
Posted by
SUBRAMANI V K
on
Aug 01, 2025
Filed Under
DIRECT TAXES
Hi Sir,
Hope the view of the AO is justified by the fact that the assessee is engaged in the business of providing professional services.
Though the teachers of such programme are not professionals, services provided by the assessee still be considered as professional services and the taxable income be reported under section 44 ADA.
Posted by
MANOJ V on
Aug 04, 2025