9911796707
TMI BlogQUERY ABOUT SECTION 44 AD OF INCOME TAX ACTX X X X Extracts X X X X X X X X Extracts X X X X ..... QUERY ABOUT SECTION 44 AD OF INCOME TAX ACT X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) Once I opt for Section 44AD, am I legally bound to follow this method for 5 years ? Thanks a lot in anticipation Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: It is presumptive taxation. In this case the taxable income is 50% on the business revenue (in your case consultancy services) is added to the regular income such as pension, interest on fixed deposits etc. No expenditure cause for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... your professional service shall not be deducted. This reduce your tax burden. I am following this method for the past 3 years. Reply By Sadanand Bulbule: The Reply: Dear Sir I too follow this method since 7 years. Its quite simple and comfortable. Some times refunds are issued quickly. Reply By Padmanathan Kollengode: The Reply: There are two provisions oft confused:- Sec 44AD - Business In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come (other than professional) Minimum 8% of TO (6% if receipts are through banking channel) has to be declared as profit (or higher profit if the actual is more than 8%/6%). persons earning commission/brokerage are not eligible for this presumptive scheme. Once opted for an AY, the assessee must declare profit under 44AD for continuous 5 AYs. If opted out in between, then he shall not be eligible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to opt in again for next 5 AYs and he shall be subject to tax audit (if income more than basic limit) in those years. Sec 44ADA - for Professional Income - Every person carrying on legal, medical, engineering, or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eligible for the presumptive scheme for professionals under section 44ADA. Declare minimum 50% of gross receipt as profit (or higher profit if the actual is more than 50%). Eligible professionals if Gross Receipt is less than 50 lakhs (75 lakhs in case cash receipt less than 5% of total receipt). He can opt 44ADA year wise i.e. No concept of 5 continuous AYs. Reply By Padmanathan Kollengode: The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply:
The advantage of above scheme is no need to maintain regular books of accounts. All deductions upto sec 37 are deemed to be allowed.
Reply By KASTURI SETHI:
The Reply:
I am highly thankful to all experts for their valuable advice and devoting their precious time for me. X X X X Extracts X X X X X X X X Extracts X X X X
|
