Which professionals are covered under section 44ADA?

Eligible Professionals under Section 44ADA

• Engineering.
• Legal.
• Architectural profession.
• Accountant.
• Medical.
• Technical consultant.
• Interior business.
• Other notified professionals such as authorized representatives, film artists, certain sports-related persons, company secretaries and information technology.

How do I file ITR under presumptive income?

ITR-4 Form is the Income Tax Return form for the taxpayers who opt for a presumptive income scheme under Section 44AD, Section 44ADA and Section 44AE of the Income Tax Act. However, if the turnover of the business mentioned above exceeds Rs 2 crores, the taxpayer will have to file ITR-3.

Which of the professions are not covered under Income Tax Act?

The income received from the teaching profession or the activity of preparing content material is not covered under Section 44AA(1) of Income tax. Dilip Lakhani, Senior Chartered Accountant, answers queries from our readers.

What is section 44 of Income Tax?

Under Section 44 of Income Tax Act, any person engaged in business or profession is required to maintain book of accounts for every financial year and get them audited by certified auditors. The procedure of maintaining book of accounts and getting them audited gets cumbersome for small tax payers.

Who can file presumptive income?

Presumptive taxation for businesses is covered under section 44AD of the income tax act. Any business which has a turnover of less than Rs 2 crore can opt to be taxed presumptively. They must declare profits of 8\% for non-digital transactions or 6\% for digital transactions, whichever one is applicable.

What ITR-3?

ITR-3 is a form that is applicable for resident individuals and Hindu Undivided Families (HUFs). In order to file income tax returns with an ITR-3 form, an assessee must earn his/her income from a proprietorship business or a profession.

How do I show presumptive income in ITR 3?

The gross receipts from the professional activity during the financial year should be reported at column 62(i). The presumptive income from the professional activity should be reported at column 62(ii), which is required to be computed @ 50\% of gross receipts.

Who is eligible for presumptive taxation?

What is non specified profession?

If a person is carrying on a non-specified profession or any business, income from which business or profession exceeds Rs. 1,20,000 or his total sales/gross receipts from such business or profession exceed Rs. The profession of teacher is covered under the definition of non-specified profession.

What is difference between 44AD and 44ada?

The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses: > Business of plying, hiring or leasing of goods carriages referred to in section 44AE….Meaning of presumptive taxation scheme.

What is ITR-4S form?

What is the ITR-4S Form? The Sugam ITR-4S Form is the Income Tax Return form for those taxpayers who have opted for the presumptive income scheme as per Section 44AD and Section 44AE of the Income Tax Act.

Who is liable to pay advance tax under section 44ADA?

Any person opting for the presumptive taxation scheme under section 44ADA is liable to pay whole amount of advance tax on or before 15th March of the previous year. If he fails to pay the advance tax by 15th March of previous year, he shall be liable to pay interest as per section 234C.

Is section 44ADA applicable to assessee?

If 44ADA applicable to Assessee then the provisions of section 44AB(d) requires such an assessee to get his accounts audited if he has claimed his income to be lower than the profits or gains so deemed (a sum equal to 50\% of the total gross receipt is deemed as income) to be the profits and gains of his business…

What is 44AB of Income Tax Act?

♣ Tax Audit applicable income v. Not applicable income Audit of accounts of certain persons carrying on business or profession. 44AB. Every person,— (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year; or

Can a professional firm opt for section 44ADA?

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 Kindly Refer to Privacy Policy & Complete Terms of Use and Disclaimer.