| Originally posted by : rama krishnan | ||
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@ dr. jyothish, I think you haven't gone through 44ada provisions in subtle. for your convenience, 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 and whose total gross receipts do not exceed fifty lakh rupees in a previous year, a sum equal to fifty per cent 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".it's mentioned that minimum 50% or sum higher than the aforesaid sum claimed to be earned by the assessee. so even if you opt for 44ada, if you have knowledge that you have earned more than the 50 percent of turnover then that sum have to be declared as total income. the only benefit in 44ada is that you no need to maintain books and audit them. for expenses, you can bring in your car bike laptop desktop mobile phone as fixed assets and can claim depreciation . you can also claim maintenance charges for that fixed assets apart from fuel expenses. you can also claim travelling expenses attributable to the professional services rendered to the pharma companies. this is my humble view |  |
Not sure where are you reading this. But once 44ADA or 44AD is invoked, you have no obligation to account for any of the expenses and are at absolute liberty to disclose the minimum percentage as permitted in the respective section. The whole idea is that you are not maintaining books of accounts, hence have no idea what your expenses are.
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