Presumptive tax professional 46 lakhs+GST=54lakhs

No as per sec 44ADA if gross receipt <=50 lac then avail it in your case it is 54 lac as GST or any tax is part of gross receipt or Turnover

You have to maintain books as per sec 44AA & get audit u/s 44AB

Dear Sir,

1) Yes you can claim 44ADA as gross receipts is less than Rs.50 lacs (excl. GST).

2) Yes you can show Rs.23 lacs as income even though expenses are lower than 50% of your gross receipts.

3) Please ensure correct filling of financial particulars and GST turnover in ITR-4.

Thanks

Hi

The gross receipts for the purpose of 44ADA shall be considered exclusive of GST. i.e. 46 lacs.

1. Yes. Mention your gross receipts to be 46 lacs.

2. Yes.

Hi,

The Gross receipts are excluding the GST component and since it is below 50 lakhs , you are eligible for presumptive income at 50%.

Irrespective of your actual expenses, you can still go ahead and claim presumptive expenditure @50%.

Hope that clarifies.

Regards,

Nikhil.

Hi

1.GST collected should not form part of turnover so yes you can opt for 44ada.

2.Minimum expenses to be declared under the scheme is 50%,that means 50%profit is to be declared. But if you wish you can declare higher profit as your actual expenses are low.

Hope it helps

Hi,

There is no guidance available on the definition of gross receipts mentioned in section 44ADA.

However, we can draw analogy from various case laws relating to other similar presumptive provisions. Based on that, GST should not be included in the gross receipt.

Hence, you will be able to take the benefit of section 44ADA.

Hi,

Indirect taxes are included in turnover for Section 44ADA hence you are not eligible for presumptive taxation as your turnover will be considered as 54 lakh and you have to obtain Tax Audit report from a CA.

If you are eligible then you can claimed 50% as Expense even if actual Expenses are less than that it will not create any issue however if you want to show your income higher than 50% you can show voluntary.

If your income i.e gross receipts less expenses is less than 23 lakhs, then you cannot file under presumptive taxation mode. In this case since your income is exceeding the basic exemption limit i.e 2,50,000/- you have to do tax audit. So it is better to declare the actual income and not 50% and do tax audit.

The Turnover for the purpose of Limit is to be considered inclusive of GST. Hence your turnover is 54 lakhs and you are not eligible for presumptive taxation scheme u/s 44ADA.

To answer your other question you have to show your actual profit or 50% of gross receipts whichever is higher under the presumptive scheme of section 44ADA. If the actual profit is higher you are liable to show the actual profit.

Dear Sir,

As per section 44ADA , only the professions as defined under 44ADA are eligible to file return under that section.

Engineering services are included as profession u/s 44ADA.

The Act provides to file return under presumptive taxation with minimum profit @50%. Hence, it is upon the assessee to declare profit more than 50% if he so wishes to and has supporting for the same.

As the books of accounts are not required to be maintained u/s 44ADA you can declare profit @50% and file your ITR.

Hope this resolves your queries!

Dear Sir,

If your Gross Receipts are less than Rs.50 Lakhs you can choose for presumptive taxation U/s.44ADA.

1. Yes, you are eligible for Presumptive Taxation as your Gross Receipts(doesn't include GST) is less than Rs.50

Lakhs.

2. Yes, even if your actual expenses are less than 23 Lakhs you can pay taxes only on your 50% of gross receipts.

Dear Sir,

Hope you are doing well !

1. Yes, you are eligible for presumptive taxation scheme u/s 44ADA because your gross receipts are less than Rs. 50 lakh. (excluding GST component).

2. Yes, even if your actual expenses are less than 23 Lakhs you can pay taxes only on your 50% of gross receipts.

Thanks & Regards,

Payal Chhajed