Section 44ADA- Provisions for computing profits and gains of profession on presumptive basis - Income Tax - Ready Reckoner - Income Tax

Section 44ADA - Provisions for computing profits and gains of profession on presumptive basis This section Inserted in Act from A.Y. 2017-18 An assessee being resident in India, engaged in profession and whose total gross receipts do not exceed 50 lakh rupees in the PY, then 50% of such receipts, or higher sum earned by the assessee shall be deemed to be the profits and gains of such profession chargeable under head PGBP. From AY 2024-25:- in case of an assessee where the amount or aggregate of the amounts received during the previous year, in cash, does not exceed 5% of the total gross receipts of such previous year, then for the purpose of this section gross receipts shall be Rs.75 lakh .[Amendment by FA, 2023 ] For the purpose receipt in Cash include the receipt of amount or aggregate of amounts by a cheque drawn on a bank or by a bank draft, which is not account payee [Proviso added by FA, 2023 ] NOTES: Deduction u/s 30 to 38 shall be deemed to have been applied WDV of any asset for the succeeding year shall be computed as if assessee has claimed deduction Assessee has to maintain accounts and get them audited if he claims profits to be less than 50% of gross receipts ELIGIBLE PROFESSIONALS U/S 44ADA This is applicable only to a resident who is an Individual, HUF or Partnership but not a Limited Liability Partnership Firm. The following are the professionals, who are eligible to opt for Presumptive Taxation Scheme under Section 44ADA : Engineering Legal Architectural profession Accountant Medical Technical consultant Interior business Other notified professionals such as authorized representatives, film artists [ Refer explanation (c) of Rule 6F of Income Tax Rules ] Film artist means any person engaged in his professional capacity in the production of a cinematograph film whether produced by him or by any other person, as (i) an actor; Stunt Artist is not a Actor - No stunt artist is not actor and it does not covers in the meaning of Film artist for the purpose of section 44ADA and section 194J. [ Deputy CIT, (TDS) Circle-2 Vs Movies Stunt Artists Association 2005 (11) TMI 366 - ITAT MUMBAI ] (ii) a cameraman; (iii) a director, including an assistant director; (iv) a music director, including an assistant music director; (v) an art director, including an assistant art director; (vi) a dance director, including an assistant dance director; (vii) an editor; (viii) a singer; (ix) a lyricist; (x) a story writer; (xi) a screen-play writer; (xii) a dialogue writer; and (xiii) a dress designer. certain sports-related persons [ Refer Notification No. 88/2008 date 21.08.2008 ] Sports Persons, Umpires and Referees, Coaches and Trainers, Team Physicians and Physiotherapists, Event Managers, Commentators, Anchors, and Sports Columnists., company secretaries and profession of information technology.