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Is an Audit required if TDS is deducted under 194JB?

09 September 2023

I am a software freelancer and my TDS was deducted under 194JB. My Turnover is between 1.5 to 2 cr. Is an audit required in my case for ITR filing? Also am I eligible for Presumptive Taxation u/s section 44AD? What should I do to get maximum tax benefits?

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4 Replies

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 09 September 2023

Audit is applicable since turnover is above 50Lakhs for profession.

So Audit is applicable and 44ADA can't be availed.

It's not covered by 44AD since it is not business income but professional income

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 09 September 2023

Yes I agreed with Mr Eswar Reddy,

Your income is professional income. The professional income not covered under section 44ad.

Rs. 50 lakhs is Professional income limit for Audit. So, Audit is applicable to Your current income.

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Senthil Kumar (Articles Assistant) (52 Points)
Replied 11 September 2023

Audit is applicable. To get maximum tax benefit,

1. Claim depreciation for the computer / laptop used
2. Pay the rent for the places where you worked, if not owned by you

Please note that GST registration is mandatory for you since the taxable turnover exceeds 20 lakhs.. Hope, you have GST registration...