Dr Mahim asked 7 years ago
Presumptive tax for profesionls
Iam a doctor with private clinic, apart from consultation I do sell medicines.
In previous financial year I sold medicine worth 6 Lakh and got consultation fee of 18 Lakh, total income is 24 Lakh, if I opt for Presumptive tax how do I calculate total profit
Rahul Chillal answered 7 years ago
The Recent budget has introduced section 44ADA where in for professional who want to opt for presumptive taxation can do so, wherein they will be taxed @ 50% of gross turnover & it will be considered as their professional income. Therefore if one opts for such scheme one will have to pay tax on profit, which in your case is comes to 12 lakhs (50% of 24 lakhs) which works out to be 185000. It is therefore advisable to prepare books of accounts
Section 44AD is not applicable for professionals
Neha Jain answered 7 years ago
As per Section 44ADA of the Income Tax Act, a professional (engaged in Legal, Medical, Engineering, Architecture, Accountancy, Technical or Interior Decoration services) can opt for Presumptive Taxation whose Total Gross Receipts do not exceed more than Rs 50 Lakhs in a Financial Year. Total Taxable Income would be assumed as 50% of Total Gross Receipts of the year.
In your case Total Gross Receipts are Rs 24 Lakhs so the taxable income (Net Profit) would be Rs 24L*50% i.e. Rs 12 Lakhs
