Presumptive Taxation: Medical Professionals can use the new section 44 ADA for their Income Tax Purpose

Presumptive Taxation: Medical Professionals can use the new section 44 ADA for their Income Tax Purpose Section 44 ADA has been inserted after Section 44 AD of the Income Tax Act starting 1st April 2017: 44ADA. (1) Notwithstanding anything contained in sections 28 to 43C, in the case of an assessee, being a resident in India, who is engaged in a profession referred to in sub-section (1) of section 44AA ( it includes medical profession) and whose total gross receipts do not exceed fifty lakh rupees in a previous year, a sum equal to 50% of the total gross receipts of the assessee in the previous year on account of such profession or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the assessee, shall be deemed to be the profits and gains of such profession chargeable to tax under the head “Profits and gains of business or profession”. IMA’s Viewpoint • This Section is for simplification of taxation for professionals. • It will reduce compliance burden on small professionals and will felicitate ease of doing profession. • It will also bring parity between small businessmen who enjoy Presumptive Taxation under section 44 AD. It will be applicable to individual doctors, their HUF and their partnership firm (for example Husband & Wife partnership). It will not be applicable to limited liability partnership. • Under this Assessment, doctors need not maintain the books required to be kept under Section 44 AA and doctors need not get the accounts audited under Section 44 AB. • All deductions from Section 30 to 38 including depreciation and unabsorbed depreciation and allowances shall be deemed as allowed and written down value of depreciable assets shall be re-computed deducting depreciation which is deemed as allowed. • Kindly note that as a new section is introduced from 2017, Assessment Year 2017-18 and advance tax in the financial year 2016-17 may have to be calculated accordingly. • This scheme may not be advisable for the professionals having some net profit ratio, who pay interest on borrowings, has significant depreciation available.  • Unlike businessmen who are permitted under Section 44 AD to pay the whole of advance tax by March 2015, the same concession is not available to doctors and they will have to pay all 4 installments of advance tax. • Also, there is no provision in Section 44 ADA permitting the professional firms to deduct interest/remuneration paid to partners from the presumptive income offered. Example: If a doctor is earning less than 50 lakh per annum (most of the doctors will come in this bracket) than 25 lakh will be given to them as mandatory allowable expenses with no need for keeping records. Out of the next 25 lakh, they can claim 2-2.5 lakh in various investments and allowable adjustments and to the rest income tax will be applicable. Roughly for an income of Rs. 50 lakh, Rs. 5 lakh will be the income tax which in totality comes out to be approx. 10% of the gross income. When we professionals are ready to give 20-30% of our gross income fee to the corporate sector who provides us the space to have the OPD, paying 10% tax is a peanut and results in no income tax worries.

IDS Scheme

IDS Scheme

Dr K K Aggarwal Govt. of India has come out with a new Income Declaration Scheme, 2016 which can be made use by all individuals, HUF, companies, firms, associations of persons etc. Under this Scheme declaration can be made in respect of undisclosed income and investments in any asset representing undisclosed income relating to any financial year up to 2015-16.
This is not an immunity scheme as it has 7.5% penalty. The amounts payable by the declarant will be taxed at 30% on undisclosed income, 7.5% surcharge and 7.5% penalty. Total money paid will be 45%. The scheme is effective from 1st June and declaration may be filed up to 30th September. As on date, tax surcharge and penalty has to be paid by 30th November, though the Govt. is thinking of extending this time and making payments in three instalments with easy fund flow.
Under the Income Tax Act 138, the names of disclosure will be kept confidential unless they have violated some legal laws.
The scheme will provide immunity from prosecution in income tax act & wealth tax in respect of declaration. It will also provide immunity from Benami transaction Act.
We, the members of IMA, should advocate this scheme to all our patients, who have undisclosed income, so as to avoid worry-induced hypertension, heart disease and heart blockages.

On the occasion of Doctors Day today, IMA stresses on the need to revive the popularity of medicine as a promising career option

On the occasion of Doctors Day today, IMA stresses on the need to revive the popularity of medicine as a promising career option Congratulates the recipients of the Dr BC Roy National Award New Delhi, July 1 2016: On the occasion of Doctors Day, the Indian Medical Association has appealed that all its 2.5 lakh members to act as brand ambassadors of the medical profession and encourage youngsters to take up the profession in the future. They have also stressed on how doctors must never smoke or drink in public since patients look up to them and often follow by example. “On the occasion of Doctor’s Day, IMA has appealed to all its doctor members to not give way if they are being forced to accept targets by hospitals. Every doctor is requested to uphold the integrity, dignity and honour of the medical profession. We wish everyone a very Happy Doctors Day and congratulate those who received the prestigious Dr BC Roy National award at the Rashtrapati Bhavan earlier today. Dr BC Roy in whose memory this day is celebrated will continue to remain an inspiration for the entire medical fraternity for centuries to come,” said Dr SS Agarwal National President IMA & Padma Shri Awardee Dr KK Aggarwal – Honorary Secretary General IMA & President HCFI. The medical profession as a whole is becoming less popular amongst the young who afraid of the long and many years of struggle they see ahead of them. The shortage of medical colleges and MBBS seats further adds to the problem. There is an urgent need to increase the quality of medical education in India, address the shortage of seats and bring back the fading trust in the profession. The medical profession was, is and will always remain a noble one. Doctors Day is celebrated every year on July 1st in remembrance of Dr BC Roy - a social reformer, politician, statesman, administrator and the founding President of the Medical Council of India. Dr Roy played a key role in establishing the Indian Institute of Mental Health, the Infectious Disease Hospital and the first ever post-graduate medical college in Kolkata. Dr Roy was also actively associated with the Indian Medical Association and guided their deliberation. During his long association with the Medical Council of India, Dr Roy helped in upgrading the standards of medical education in the country and the organisation of post-graduate medical education on a firm footing.

B12 deficiency can be the underlying cause of short term memory loss

B12 deficiency can be the underlying cause of short term memory loss New Delhi, July 3, 2016: If you are forgetting things often, it is recommended that you get your vitamin B 12 levels checked instead of worrying that you may be suffering dementia, said Padma Shri Awardee Dr KK Aggarwal - President Heart Care Foundation of India and Honorary Secretary General IMA. Animal products (meat and dairy) are the only dietary source of B12 (cobalamin - Cbl) for humans. Strict vegans who do not consume any animal products are at a high risk of developing nutritional Cbl deficiency. The usual western diet contains 5 to 7 micrograms of cobalamin per day, while the minimum daily requirement is 6 to 9 micrograms per day. Total body stores of Cbl are 2 to 5 mg and one-half of this is in the liver. It takes years to develop vitamin B12 deficiency after absorption of dietary B12 ceases. There is a link between infection with Helicobacter pylori (as seen in peptic ulcer) and low serum B12 levels. Mild and usually subclinical cobalamin deficiency can also occur in 24% of the elderly. People taking metformin, those who are obese, suffer from diabetes or polycystic ovarian disease are at a higher risk of suffering from Vitamin B12 deficiency. This can however, be reversed with oral calcium supplementation. Prolonged use of omeprazole (given for acidity) can result in Cbl deficiency. Women who are only moderate vegetarians may become Cbl deficient during pregnancy and lactation. Their infants also run the risk of being Cbl deficient.

AAP/AAPD issue updated guidelines on safe sedation for children

AAP/AAPD issue updated guidelines on safe sedation for children The American Academy of Pediatrics (AAP) and the American Academy of Pediatric Dentistry (AAPD) have released updated guidelines on the monitoring and management of pediatric patients before, during, and after sedation for diagnostic and therapeutic procedures. • The guidelines recommend that practitioners consult with appropriate subspecialists and/or an anesthesiologist for patients at increased risk of experiencing adverse sedation events because of their underlying medical/surgical conditions. • The child shall be accompanied by a parent, legal guardian, or other responsible person to and from the treatment facility. • Facilities, personnel, and equipment to manage emergency and rescue situations should be immediately available, including an emergency cart or kit containing the necessary age- and size-appropriate equipment (oral and nasal airways, bag-valve-mask device, LMAs or other supraglottic devices, laryngoscope blades, tracheal tubes, face masks, blood pressure cuffs, intravenous catheters, etc.) to resuscitate a nonbreathing and unconscious child. • The guidelines recommend documentation prior to sedation with regard to informed consent and instructions and information provided to the responsible person. • During the procedure, ventilation should preferably be monitored by capnography or by amplified, audible pretracheal stethoscope. • Not only the practitioner, but the support personnel should also be trained in and capable of providing advanced airway skills (e.g., PALS). A useful acronym ‘SOAPME’ is suggested as a checklist. S: Size-appropriate suction catheters and a functioning suction apparatus (eg, Yankauer-type suction) O: adequate Oxygen supply and functioning flow meters or other devices to allow its delivery A: size-appropriate Airway equipment (eg, bag-valve-mask or equivalent device [functioning]), nasopharyngeal and oropharyngeal airways, LMA, laryngoscope blades (checked and functioning), endotracheal tubes, stylets, face mask P: Pharmacy: all the basic drugs needed to support life during an emergency, including antagonists as indicated M: Monitors: functioning pulse oximeter with size-appropriate oximeter probes, end-tidal carbon dioxide monitor, and other monitors as appropriate for the procedure (eg, noninvasive blood pressure, ECG, stethoscope) E: special Equipment or drugs for a particular case (eg, defibrillator) The guidelines were published online June 27, 2016 and in the July issue of the journal Pediatrics

A Doctors Day special webcast held on the legal and ethical aspects governing the medical profession

A Doctors Day special webcast held on the legal and ethical aspects governing the medical profession IMA & HCFI raise awareness about medical negligence and the ethical duties that all medical professionals must follow New Delhi, June 30, 2016: The field of ethics studies principles of right and wrong. There is hardly an area in medicine that doesn't have an ethical aspect. The medical profession was, is and will always remain a noble one. The job of doctor is to help reduce suffering. The first oath that a doctor takes upon entering the profession is: "A physician shall uphold the dignity and honor of his profession” and the first declaration they make is "I solemnly pledge myself to consecrate my life to service of humanity." However in today’s day and age, we witness a high degree of commercialization in the medical field. Cases of medical negligence, unethical promotion and misconduct are not uncommon. This has brought the entire medical profession into question. What we must remember is that there are black sheep in every profession and without trust and belief in the system of medicine, it is not possible for a doctor to effectively do his duty of helping save lives. Stressing on the urgent need raise awareness about the duty of every medical professional to uphold the ethics and duties that govern them and to reinstate the nobility of the profession, IMA and Heart Care Foundation of India organised a webcast today. The expert faculty for the same consisted of Dr. Arun Gupta – President Delhi Medical Council, Dr. Girish Tyagi- Registrar Delhi Medical Council and Padma Shri Awardee Dr KK Aggarwal – President HCFI & Honorary Secretary General IMA. The webcast was assisted by Dr. V K Monga, Dean IMA CGP. Speaking about the same, Padma Shri Awardee Dr KK Aggarwal – Honorary Secretary General IMA and President HCFI said, “We are committed to making the medical system in our country more transparent and efficient. It is for this reason that we constantly strive to educate member of the medical fraternity about the ethics that govern the profession. We urge the entire medical fraternity to abide by the MCI regulations and maintain the nobility of the profession. We also urge the public to understand that doctors’ work towards the benefit of the society and they must be trusted. The increasing incidence of violence against doctors, no cap on compensation in cases of medical negligence cases as well as the enforcement of acts such as the PCPNDT act only deter doctors from doing their job of saving lives effectively. Doctors must be respected and trusted.” The Medical Council of India states terms like pardon, warning and censure for differnet cases of mild human negligence by Doctors where the council can give a second chance to the doctors without ruining their medical career. However, these should be applied in cases involving no criminal offence. Calculating from the shortage of doctors in every hospital in repect to the number of patients, a doctor at an average gets 5 minutes per patient. In these 5 minutes, he is required to wash his/her hands twice - before and after checking the patient, take the entire medical history of the patient, examine them in an effective manner and prescribe the relevant treatment. In just 5 minutes, miscommunication and mistakes are bound to happen. It is crucial that more focus is laid on increasing the number of seats for medical professionals, regularly training doctors through CMEs on new treatments and diseases as well as encouraging more people to enter the profession. Adding to this, Dr Arun Gupta, President Delhi Medical Council said,”Indulging in unethical acts leads to the defamation of the whole profession. It is the respobsiity of all medical professionals to adhere to their ethics and for patients to respect their doctors.” Dr. Girish Tyagi, Registrat Delhi Medical Council said, “10-20% of the complaints received by the Council pertain to the violation of ethics. Over 90% of the medical negligence cases are the result of the shortage of doctors as well as mis-communication not only between doctor-patient but also between patient-counsellor and patient-chemist.” Miscommunication due to time constraints leads to the dissatisfaction of patients. For instance when prescribed a CT scan the doctor might recommned a particular lab because the scans their emit minimal radiation levels. Because of the time constraint, the doctor in most cases would not communicate this to the patients. In turn the patient might feel that the doctor gets a cut from the centre and that is why they have recommended it. It is thus important for patients to trust their doctor. A few tips for doctors to safeguard themselves against cases of medical negligance 1. Doctors should communicate properly and be empathatic towards the patients. 2. Conversations between doctors and patients should be video taped for future references. 3. Consent form should be crisp and precise so that terms and conditions are clearly understood by the patients to avoid any confusions. 4. In cases where a MLC is to be made the police should be informed at the earliest.

Today is Doctors’ Day

Today is Doctors’ Day Doctors’ Day is celebrated in India on 1st July every year to mark the Birth & Death anniversary of Bharat Ratna Awardee, Dr Bidhan Chandra Roy (Dr BC Roy). Dr BC Roy was born in 1882 in Patna, Bihar and after doing his medical graduation in Kolkata and MRCP and FRCS at London, he started his career as a physician in Patna in 1911. He taught in Patna Medical College and in Carmichael Medical College. He was a true freedom fighter and joined Mahatma Gandhi in Civil Disobedience Movement. In the field of politics, he became a leader of the Indian National Congress and later Chief Minister of West Bengal. In 1976, he was conferred Bharat Ratna and Dr B C Roy National award were constituted in his name the same year. He left us on 1st July, 1962 but his soul is still remains in the collective consciousness of the medical profession of our country. The demand for a Doctors’ Day originated in Kolkata by Kidderpore Branch in 1989 under the Presidentship of Dr Santanu Banerjee and Dr Pradip Kumar Chatterjee as the Secretary. Later, the state working committees of IMA Bengal and the IMA Bengal State Council in 1989 resolved to declare 1st July as Doctors’ day under the Presidentship of Dr Ashok Chaudhuri. The forwarded resolution was considered by IMA Central Working Committee held on 24th & 25th April, 1991 under the then National President, Dr Ram Janma Singh and IMA declared 1st July as Doctors’ Day starting from 1st July 1991. IMA persuaded the Government of India to accept it as National Doctors’ day and 1st July 1992 became the historical Doctors’ day when it was accepted and recognized by the Govt. of India. (With inputs from IMA Bengal, Dr Sanjoy Banerjee)