Taxable Income for non-salaried professional

Dear Sir,

Hope you are doing well !!

You can take the benefit of section 44ada.

(Assuming you are providing eligible services specified under 44ada).

The income of any professional under this section is considered to be 50% of the total gross receipts for the year, as they usually assumed that they do not incur many expenses. The professionals under this scheme are not required to maintain books of accounts.

The following are the professionals, who are eligible to opt for Presumptive Taxation Scheme 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

If you don't have any expenses to claim then it will be 100% of your receipt.

50% is the minimum amount provided by government but if you are earning higher you need to show that.

If you need any assistance in filing your ITR you can contact me.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hello Sir,

You can claim presumptive taxation benefit under section 44ADA for you consultancy income of the year. In this way, you need to offer atleast 50% of your income to tax for the concerned financial year.

Thanks

Damini

Hello Sir!! 

In your case apparently it appears that your Actual taxable income is your Contract Value as NIL expenditure to be accounted for. However, since you are working as a Professional then planning can be done and 50% or more than that income can be shown u/s 44ADA and benefit can be taken.

In case you have additional queries, please feel to contact. Thanks

Hi,

- It will be 50% of the total contract value Rs.10 lacs i.e.50% of Rs.20 lacs.

Thanks

Hi

If your services are covered under Eligible services mentioned under sec 44ada,then you can take the benefit of PTS,by declaring minimum 50% as taxable Income and pay taxes accordingly.

And if its not covered then file return under normal tax payer and pay taxes on actual Income less expenses (if any).

Hope it helps

You can claim 50% under section 44ADA for your consultancy services.

Hello,

You can take the benefit of Sec. 44ADA. By covering yourself under this presumptive taxation scheme you can offer 50% of your total receipts as your income from the profession.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Hello Sir,

It will be 50% of contract value.

Dear Sir,

1. Following professional ( called as Specified professional)can declare income u/s 44ADA . (i.e 50% of gross receipt)

• Legal
• Medical
• Engineering
• Architectural
• Interior decoration
• Accountancy
• Technical consultancy
• Film artists(anyone engaged as a professional in the film industry)

2. Other ( Non specified) can opt 44AD on reasonable interpretation of law. (8% or 6% on amount received in account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.). Reason behind the reasonable interpretation is, professionals cant opt 44AD on literal interpretation. But non specified professionals are not eligible for presumptive taxation except u/s 44AD0

"On safer side you can declare 50% of income u/s 44AD, if you are non specified professional. "

Hi

I assume your query us in relation to income tax.

Depending on the nature of services provided you, if eligible under section 44AA, you may claim the benefit of presumptive taxation scheme under section 44ADA whereby 50% of your gross receipts shall be considered as expenses without the requirement of maintenance of books of accounts.

You don't have to pay advance tax 4 times a year if you are covered under section 44ADA. You have to pay 100% of your advance tax liability upto 15 March.

No in 1 installment in March.

Good Morning sir, 

You can pay on or before 15th March( 100% in last quarter only). First 3 installments are not applicable to 44ad beneficiary. 

Professionals are covered under 44ADA and not 44AD. 

Advance tax has to be deposited in March only.

Hi,

The taxpayers who have opted for presumptive taxation scheme have to pay the whole amount of their advance tax in one instalment on or before 15 March. They also have an option to pay all of their tax dues by 31 March.

There is a section 44ADA which can be applied if you are rendering technical consultancy services wherein 50% of your receipts will be treated as your taxable income.  You cannot claim any expenses on this.  Also, since foreign employer has not deducted any taxes, ensure you pay advance tax to avoid interest cost later.  You can submit 4 installments as per the various due dates given. 

Your roughly calculate your annual income and tax thereon.  THereafter pay the tax installments accordingly.  The income estimate can be made for every installments. I would advise you to make a little higher payments in first installments to avoid interest. 

It is one installment on or before 15 March. You can pay till 31.03.XXXX

100% of advance tax in one installment.

Hi

Advance tax to be paid in  Only one installment. In last quarter only.

Hope it helps