Confusion about presumptive taxation

Hi,

Yes, you are eligible to opt for section 44ADA.

Yes, you will have to pay 100% of your advance tax by 15th March. It's up to you whether you want to pay in one shot or in installments

Dear Sir,

You can avail benefit of scheme u/s 44ADA. As per sec 44ADA, your total income would be 50% (i.e. 5 lacs) of your gross receipts and you need to pay tax on 5 lacs only. No benefit of expenses would be available to you.

For 44ADA persons, advance tax is payable in one installment upto 15.03, credit of which will be reflected in your ITR.

If you don't avail the benefit of 44ADA then you can pay it multiple times.

Thanks

Hi

Yes, you can opt for 44ADA thereby declaring 50% of your gross receipts as income.

Advance tax, if applicable, needs to be paid by 15th March. You may pay it before also in installments. The same advance tax paid during the year shall be reflected in 26AS statement and credit of such tax paid shall be available during return filing. Any excess/deficient tax at the time of return filing shall be paid/refunded.

If advance tax is not paid during the year, when tax liabilities will be computed at the time of return filing, interest shall be levied because of advance tax non-payment.

Hi

if your turnover is less than 50 Lac then you can opt for 44ADA, so in your case its possible as you have 10 Lac only.

Further if you opt for 44ADA then you can report 5 Lac as taxable income as las mandate that your taxable income can't be less than 50% of total income. So in your case your taxable income will be 5 Lac.

As far as advance tax is concern yes you have to pay taxes in one go if tax payable exceeds 10000. So please check first your tax payable is exceeds 10000 or not, further whatever tax paid by you will be reflected in your 26 AS, so whenever you pay taxes then select your assessment year correctly to get the benefit of advance tax paid

it would be better if share your actual income, deduction and tax paid details with us.

Yes you can opt for 44ada.

Compute your tax ,if it exceed Rs 10000 then advance tax is applicable .it can be paid in installments also,whatever you will pay ,get reflected in 26AS .

Yes you can take the benefit of 50% rule and can restrict your income upto 50%.

It doest matter whether its bank receipt or not.

Could you be please how you are calculating your tax liability/tax payable

Minimum declaration is 50% of gross receipts. You can declare more than 50% ,then you need to pay tax on it. Benefit of digital transactions is for business persons only and not for professionals.

You can take advantage of 50% income.

Hi,

Yes, can opt for section 44ADA.

You will have to pay 100% of your advance tax by 15th March. It is advisable to pay taxes regularly and ensure that 100% of it is paid before 15th Mar.

You can take the advantage of 50% rule.

Yes, even if your actual income exceeds 50% you can claim this section and claim 50% income. You don't need to maintain record of expenses.

Hi,

Even if your total income exceeds 50%, you may go ahead and report 50% as you are not required to maintain any books of accounts to substantiate that your profit was computed for more than 50%.

However, it is important that you take the total turnover value correctly. As that can be verified via bank statement.

Advance Tax: For those opting presumptive, no need to follow quarterly deadlines of advance tax. You may clear off the entire advance tax liability by 15th March of the financial year.

But if you want to pay installments, then you may pay the taxes as per your convenience in any ratio divided throughout the financial year. Please note that if you discharge your liability towards taxes after March, then there is interest which will be levied in the final tax return. Whatever you will pay throughout the year, will get reflected in the tax return.

Thanks

Damini

You can opt for presumptive taxation. Law assumes at least 50% of receipts as taxable income. There is no bar if you are showing extra taxable income.

Similarly, advance tax at one installment is a liberty given. You can very well deposit the advance tax earlier in installment.

As per Section 44ADA, if You are a professional & your Gross receipt is upto Rs. 50 Lacs, You can declare profit as 50% or more of Total Gross receipt.In that Case you do not need to maintain any books of accounts.If you will show your profit less than 50% of Gross Receipt than you have to maintain books of account & get your accounts audited by a Qualified chartered accountant.

As far as concern about advance tax, if your total tax liability Exceeds Rs. 10,000 in a financial year than you have to deposit advance tax in four Installments i.e 15th June, 15th Sept, 15th Dec, 15th March.But in case you have not deposited first 3 installments then you have to deposit entire tax amount by 15th March. In case non payment of 100% of Tax upto 15th March you have to pay interest.

What if my net income is more than 50%? Do I need to mention that? Or can I take advantage of 50% rule?

As Per section 44ADA of Income tax act, 1961, minimum profit should be 50% of Gross receipt. If you want to show more than 50% profit than it is not an issue at all.

For any query related to Income Tax, GST, ESIC, PF, TDS feel free to contact.

Email: [deleted]/[deleted]

Conatct No. [deleted]/[deleted]

Dear ,

Under Sec 44ada you are required to pay advance tax quarterly basis (unlike 44ad where 100% advance tax need to be deposited by 15th March). It will reflect as soon as you pay advance tax.

This section gives you leeway to declare Net income minimum of 50% (note minimum) thus if you want you declare more than that also. I suggest declare 50% only.

Yes. Presumptive income is allowed for you u/s 44ADA. Total receipts/fee should not exceed rs 50 Lakhs in a year.

Adv tax is 100% by 15 March in a single transaction, else interest chargeable at 1% post that. You can always pay earlier if you want to. All payments get accounted for in your ITRs so nothing to worry.

There is no obligation to offer a higher income in case you want to disclose 50% only. Also there's no requirement of maintaining books of account. Only a sheet disclosing your receipts and bank statement is enough. However, if you think you are not even earning 50% as profits, and have large expenses resulting in a lower than 50% income, you need to disclose that and not use Sec 44ADA. Even then no need to maintain accounts unless your gross recepts are less than Rs25 Lakhs. Find me on linkedin amitnarula.