RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 03 May 2018
Section 44ADA: Presumptive Taxation @ 50% for Professionals
The benefit of Presumptive Taxation which was earlier available only to specified businesses has now been extended to Professionals. Professionals whose Total Gross Receipts do not exceed more than Rs. 50 Lakhs in a financial year can claim benefit of this Section from Financial Year 2016-17 onwards.
The Income of any person making use of this Section would be assumed to be 50% of the Total Gross Receipts for the year. The following are considered as professionals who can make use of this Section:-
LegalMedicalEngineeringArchitectural ProfessionProfession of AccountancyTechnical ConsultancyInterior Decoration
This scheme is applicable only to a resident assessee who is an Individual, HUF or Partnership but not a Limited Liability Partnership firm.
Under this scheme, the assessee would be deemed to have been allowed the deductions under Section 30 to 38. No other deduction for expenses would be allowed to the assessee and it would be deemed that he has already claimed the deductions for all expenses.
The assessee would also NOT be required to:-
Maintain books of accounts under sub-section (1) of Section 44AA, orGet the accounts audited under Section 44AB in respect of such income.
However, in case the assessee claims that the profits and gains are lower than 50% – he would be required to prepare Books of Accounts under Section 44AA, maintain receipts of all expenses and get his accounts audited by a Chartered Accountant.
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