Question ID : 21509

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?

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