Taxation of AOP in hospital

Question BankCategory: Income TaxTaxation of AOP in hospital
Kollipara sundaraiah asked 7 months ago

Sir,
Assess maintained a private hospital.but recently pan card number received AOP registered in I .t.act.
Question:
Taxation hospital registered  AOP in i.t.act and accounting  records  maintained producer .

1 Answers
Aditya answered 7 months ago

Some Hospital works as a company and some as AOP and Some may work as a partnership firm. 
Individual doctor may practice in his own name which no separate PAN is required for his clinic because it is treated as a proprietorship..
Tax Slab rate for AOP is same as old slab rate for individual below 60 years of age. 
Option to opt for new slab rate for FY 2020-21 is available to AOP. For more detail Click Here.
As per section 44AA. (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette shall keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act.
As stated above, section 44AA(1), which deals with specified professions and notified professions, do not prescribe for any conditions for maintenance of books of account and other documents. Therefore, every person carrying on specified and/or notified profession shall be required to keep and maintain the prescribed books of account and other documents as per Rule 6F(1).
 
Rule 6F(1) has provided the following exception when the prescribed books of account and other documents are not required to be maintained-
(a) Where the profession has been newly set up by a person in the previous year, his total gross receipts in the profession for that year are not likely to exceed Rs. 1,50,000.
 
(b) In any other case, if the total gross receipts in the profession do not exceed Rs. 1,50,000 in any one of 3 years immediately preceding the previous year.
Rule 6F(1) states that any person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorised representative or film artist is required to maintain books of account and documents as prescribed in Rule 6F(2). 
 
The prescribed books of account and other documents under Rule 6F(2) are as follows: 
(a) a cash book; 
(b) a journal, if the accounts are maintained according to the mercantile system of accounting; 
(c) a ledger; 
(d) carbon copies of bills, whether machine numbered or otherwise serially numbered wherever such bills are issued by the person and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts issued by him. However, an exception is provided where the amount of the bill or receipts is less than Rs. 25; and 
(e) original bills wherever issued to the person and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed Rs. 50, payment vouchers prepared and signed by the person. However, the requirements as to the preparation and signing of payment vouchers shall not apply in a case where the cash book maintained by the person contains adequate particulars in respect of the expenditure incurred by him.

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