Exemption for consultant in income tax

Yes you can go for presumptive taxation. Thereby 50% of your receipts will be taxable. This will be applicable provided your tds is being deducted u/s 194J.

Hi,

For the consultant, the TDS deductions get reduced to 10%. Further at the time of filing the final tax return, you may take the option of presumptive reporting of taxes where in you may save lot of taxes.

There are no specific exemptions.

Thanks

Damini

Dear Sir,

Hope you are doing well.

You can take the benefit of section 44AD

"Professionals with receipts of less than Rs. 50, 00,000 can take benefit of this. Income assumed to be 50% of Value of Services.

In case of a person adopting the provisions of section 44ADA, income will be computed on a presumptive basis, i.e. @ 50% of the total gross receipts of the profession. In other words, total gross receipts from profession should not exceed Rs 50 lakh for a financial year.

Under section 44ADA- The assesse would NOT be required to maintain books of accounts or get the account audited unless he claims that the profits are less than 50% of the total Gross Receipts.

Thanks & Regards,

Payal Chhajed

You will be assessed as a professional rendering services on contractual basis, and not as an employee. You will therefore get the benefit of all expenses incurred on your profession, like depreciation on car/other vehicle used, mobile exp, fuel and repair and maintenance of car used for profession, insurance on the car, etc. Whether you will be required to maintain books of accounts, the answer will depend on whether you come within the definition of a technical consultant/professional, which we will need to understand. You can opt for tax on 50% of your fee depending on the nature of your services and total fee earned. Now onwards, your department will deduct TDS at 10%, but you will need to deposit advance tax depending on your total tax liability. You can call me for more info in case you want to, as I would need to understand more about you as well.

Dear Sir

As a professional you are having the option to file the ITR on presumptive basis u/s 44ADA whereby you are liable to pax Income tax on 50% of Receipt from the Service Granted and there which no liability to Maintain any bools of account .

Thanks & Regards

Hi,

You will not be treated as employee. You will be treated as consultant and you will have to show this as your income from business/ profession.

Now, there are certain eligible professionals who are allowed to take benefit of section 44ADA whereby you are required to pay tax only on 50% of your total receipt if their total receipt during FY is less than 50 lacs.

List of eligible professionals are as under:

A person resident in India engaged in following professions can take advantage of presumptive

taxation scheme of section 44ADA:-

1) Legal

2) Medical

3) Engineering or architectural

4) Accountancy

5) Technical consultancy

6) Interior decoration

7) Any other profession as notified by CBDT

Hi,

You can take the benefit of sec 44ADA whereby you are liable to pax Income tax on 50% of the Receipt from the Services rendered without having to maintain any books of accounts.

Regards,

Nikhil

Dear Sir,

What is the nature of service you are providing as an consultant?. There are two sections who deal with the consultancy income i.e. specified profession and non-specified profession. There is no such kind of exemptions available to professionals. The only benefit is of presumptive taxation.

I may help you in ITR filing of current year. Please contact me.

Thanks

Yes you can opt the same. You have to pay interest on the tax liability u/s 234A. If you need I can assist you in the sam efor return filling as well

Dear Sir,

Yes, you can claim the benefit u/s 44ADA subject to interest on tax liability u/s 234A/234B.

It doesn't matter whether you have paid the advance tax or not.

THANKS & REGARDS,

Payal Chhajed

Advance tax is payable at 100% by 15 March of the relevant financial year. If the F. Yr. is 2018-2019, you are liable to pay advance tax by that date. this is a relaxation by the Govt for professionals covered by 44ADA. However, you would need to make sure you are covered within 44ADA as only certain professionals specifically mentioned and technical Consultants only are covered. Hence in the course of time you will have to calculate your tax liability for the year and make advance payment of tax accordingly by 15 March 2019 for this F. Yr..

Hi,

Yes, you may claim the benefit of section 44 ADA. But whatever taxes will come, you will be required to discharge the liability along with interest.

Thanks

Damini

Yes, you can claim 44ADA if you fall in any if the above eligible professionals.

It does not matter whether you have paid the advance tax or not.

Irrespective of whether you have paid advance tax or not, you can claim the benefit of 44ADA .

Regards,

Nikhil.

Benefit u/s 44ADA is limited to specified professionals and the income is taxable @50% of gross receipts where gross receipts does not exceeds RS.50 lacs. You need to pay tax now alongwith interest for default in non payment of advance tax.

Hi

Yes, you can claim presumptive taxation under section 44ADA provided your Profession is an eligible profession for claiming the specified section exemption.

44ADA can be opted even if no advance tax was paid. You need to pay interest on non payment of advance tax at the time of return filing.

Yes you can take benefit of 44ada if you are under eligible professionals .