I deal in consultancy services for ISO certification and services includes documentation and training as a Proprietary firm. Last 8 years I submitted ITR 4.
Now FY 2017-18, can i submit ITR 3 or can I select ITR 4 on presumptive basis for profession as per 44ADA.
Please, suggest
• The decision as to whether this provision is to be adopted or not varies from case to case and the decision depends on the following parameters:
o Quantum of actual expenditure (i.e. not advisable for a professional having small net profit ratio)
o Interest on borrowings
o Depreciation available
o Quality of accounting systems etc.
• Businessmen covered u/s 44AD are permitted to pay the whole of advance tax by March 15. But no such concession is seen vis-à-vis a professional covered under 44ADA. That is to say, all the four installments may be paid.
• There is no provision in section 44ADA permitting a professional firm to deduct interest / remuneration paid to partners from the presumptive income offered.
• Whether or not the professional firm follows Section 44ADA, its partners can opt Section 44ADA with respect to working partners’ salary / interest received from the said firm
CAclubindia
