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I get fd interest. how to calculate under 44ada?

28 November 2016

Dear sir/madam
I am general medical practitioner (practicing for the past 29 years) usually not keeping any receipts. I get morethan 2.5 lakhs per year from Bank FD interest for which the banks deduct TDS @ 10%.
If my declared gross receipts are 7 lakhs /year at 50% my taxable professional income will be 3.5 lakhs. I do invest in PPF+ LIC premium put together 1,50,000/-
How do I calculate my tax?
Should I keep receipts hereafter if I opt for 44ADA?
Thanks in advance

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3 Replies

Adv. Jasmeet Singh Hora (Tax Advocate) (134 Points)
Replied 28 November 2016

Dear Sir,

In your case you dont need to maintain books of accounts if you opt for the section 44 ADA. For tax calculation I am assuming that you are not senior citizen & your income from FD interest is exact Rs. 2,50,000/- & Total income is Rs. 6,00,000/-(2,50,000+3,50,000). Tax Calculation is as follows:-

Gross Total Income:- Rs. 6,00,000/-.

Less:- Deduction u/s 80C:- Rs. 1,50,000//-.

Taxable Income:- Rs. 4,50,000/-

Tax:- Rs. 20,600 (On first 2,50,000 tax is nil, on next 2,00,000/- tax is 10.30% i.e Rs.20,600/-)

Less:- Rebate u/s 87A:- Rs. 5,000/-

Net Tax Payable:- Rs. 15,600/-

TDS Deducted by bank @ 10%:- Rs.25,000/-

Refund:- Rs. 9,400/-(25,000-15,600)

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Rajakumaaran (Dr) (30 Points)
Replied 29 November 2016

Dear Adv. Jasmeet Singh Hora

Thank you soooo much for spending your valuable time to clear the doubts of an unknown person. The guidelines you gave are definitely useful for me. God bless you sir