Presumptive tax for consultant architect- 44ADA, & queries

Presumptive tax for consultant architect- 44ADA, & queries

Hello Ma'am/ Sir,
I am an architect and working as a consultant in an architecture firm in Mumbai. I am not on payroll but this company is the sole source of income. I produce my bill to the firm to get the salary in my account through a/c payee cheque. 10% TDS is cut every month. I have been issued form 16 A for 4 quarters. I have already paid 90000 as TDS. I have made some investment and have medical insurance too. I am not given any HRA.
So, if I file my ITR under ITR 4 of 44ADA, I get approx 85000 of my TDS. Whereas if I file normal ITR I get 2000 approx refund.
I have already been suggested by experts to go ahead with ITR 4 under section 44ADA. My follow up query/question was not answered, so I am asking it here again:
1. If my salary as a consultant fixed by my company is 900000, so in the section income detail while filing tax return in column B1, income from business & profession (E8 of sch BP) should be (50% of total salary including TDS) 450000 OR 900000
2. In NOB(nature of business) BP, I have selected 703- Consultancy service, and trade name Architect. Is this correct, as there was no option for architect in pull down menu?
3. Computation of presumptive income under 44ADA. Gross receipt I have mentioned 900000 and presumptive income I have mentioned 450000. Is this correct?
4. What is E9-E12, i.e, Amount of total sundry debtors, amount of total sundry creditors, Total stock in hand, cash balance. I have kept it 0. Is it correct.
5. I have checked in the section 6% instead of 8% for calculating profit, as all my salary is credited through cheque in my account. Is that okay?
Need urgent advise, as I do not want to make any mistake. Any other comments and advise most welcome.
Thanks & Regards,
AK

Asked 8 years ago in Income Tax

Hi,

1. You should mention gross receipts as 9,00,000. ( I don't remember the column number exactly but you have to fill under section 44ADA and not under 44AD)

2. I think for architect, there is separate code. I ll get back to you on this.

3. Yes, correct. In that case, I think what you are writing and question number one is irrelevant. You don't need to fill details under section 44AD

4. You have to mention balances of your debtors and cash balance. Suppose your fee for the month of March is received in April so you have to show that fee in sundry debtors.

5. This section is not applicable to you.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

3576 Answers

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Talk to Abhishek Dugar

Hii

In your case first of all I want to clear you are working as a freelancer not as a employee of that company that's why they are deducting TDS U/s 194J @10%

Now on your query

Yes you can opt for 44ADA and show 50% or more as your taxable income or if you want to show taxable income below 50% the. Tax Audit it required

Now in 50% or more case if you have all receipts in your bank means you have not incurred exp out of this amount then you can't show only 50% as your income

6% or 8% is not applicable on your case coz it's on 44AD not on 44ADA

Further I think I can clearly explain about all queries on call

Thus plz message me on 9560945542 and fix a phone consultation

Believe me your all queries related to above issue will resolve on spot