• Presumptive Taxation under section 44 ADA for professionals

I am a freelancing individual who works on independent contract basis with clients in the software field. Would I be eligible to file for taxes under the presumptive taxation scheme of 44 ADA? Specifically, will I be covered under Engineering (Software engineering) or Technical consultant under 44 ADA?
Asked 1 year ago in Income Tax

Yes if you are an engineer and working in field of software consultancy you would be covered under 44ADA and I don't know how will it matter whether you are covered under engineer or technical consultant but to be covered in a broader perspective you can be called a technical consultant.

 

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Naman Maloo
CA, Jaipur
4271 Answers
97 Consultations

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-Specified professional are covered u/s 44ADA. Please mention scope of services provided by you to arrive at more precise reply

- U/s 44ADA, maximum threshold limit of turnover is Rs. 50 lacs and percentage of profit would be 50% or actual profit whichever is higher. From AY 2024-25, maximum threshold limit of turnover would be Rs. 75 lacs provided cash receipts should not exceed 5% of total receipts

- Deposit 100% advance tax before 15.03.2023 for FY 2023-23

- If turnover is more than Rs. 20 lacs, obtain GST registration. If services have been provided to overseas clients, you may obtain LUT to export without payment of taxes. LUT filing for FY 2023-24 is enabled on the portal.

 

For detailed discussion, you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4838 Answers
1037 Consultations

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Yes you can file return under sec 44ADA. You will be covered under Technical Consultant.

Ruchi Goel Anchal
CA, Gurgaon
525 Answers
16 Consultations

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Yes You are eligible to file for taxes (Return) under the presumptive taxation scheme of 44 ADA if your sales is less than 50 Lakhs and declare 50% of your gross receipts as your taxable income. This means that you will be taxed on only 50% of your gross receipts, and you will not be required to maintain detailed books of accounts. You will be covered under Technical Consultant.

 

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

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Shubham Goyal
CA, Delhi
210 Answers
4 Consultations

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Hi

 

Yes, you can claim presumptive taxation scheme under 44ADA software consultancy and development. I assume you are a professionally qualified engineer.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

Yes, you can take the benefit of presumptive taxation scheme u/s 44ADA.

 

 

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Hello,

 

Yes, you can use the presumptive taxation scheme u/s. 44ADA if your total receipts for the year are below Rs. 50 Lakhs threshold. You will be covered under Engineering and technical consultancy - Code 16005.

 

I hope this answer satisfies your requirements. 

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

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