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Filing360

Tax & compliance for doctors and clinics.

Consultation fees, hospital retainers, clinic income and pharmacy sales are taxed differently. We help doctors claim every legitimate deduction and stay compliant.

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Choosing a practice structure

Most doctors practise as proprietors. Group practices often use a partnership or LLP. Larger hospitals, diagnostic chains and day-care centres typically use a private limited company to bring in investors and manage liability.

What you need to stay compliant

Professional income

Eligible professionals with receipts up to ₹75 lakh (when cash receipts are within 5%) can use presumptive taxation. Otherwise, books must be maintained and audited above the threshold.

GST position

Healthcare services by clinical establishments and registered medical practitioners are exempt from GST. Medicines sold through an in-house pharmacy, cosmetic procedures and rent can be taxable.

TDS

Hospitals deduct TDS on retainer and visiting fees. It must match your Form 26AS when you file.

Local registrations

Clinical establishment registration and bio-medical waste authorisation depend on your state's rules.

Services for doctors & clinics

Read next: Old vs New Tax Regime: Which Saves You More? · LLP vs Private Limited Company: Which Should You Register?

FAQs

Do doctors need GST registration?

Not for exempt healthcare services. If you also make taxable supplies — like pharmacy sales or cosmetic treatments — above the threshold, registration may be required.

Can a salaried doctor with private practice choose the old regime?

Yes, but people with business or professional income can switch back from the new regime to the old only once, so plan the choice carefully.

Is a tax audit required for my clinic?

A tax audit applies when professional receipts exceed the audit threshold, or when you declare profits below the presumptive rate while income exceeds the basic exemption.

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