Section 44ADA, Income Tax Act, 1961 (Presumptive Taxation)
Section 44ADA, Income-tax Act, 1961 (Presumptive Taxation)
Section 44ADA, Income Tax Act, 1961 is covered under the Presumptive Taxation Scheme.┬аSection 44ADA, Income Tax Act has issued by the government to provide the relief to the small taxpayers from maintaining the Books of Accounts. Section 44ADA, Income Tax Act, 1961 is particularly related to the professionals and profession.┬а
(1) Notwithstanding anything contained in┬аsections 28┬аto┬а43C, in the case of an assessee, being a resident in India, who is engaged in a profession referred to in sub-section (1) of┬аsection 44AA┬аand whose total gross receipts do not exceed fifty lakh rupees in a previous year, a sum equal to fifty per cent of the total gross receipts of the assessee in the previous year on account of such profession or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the assessee, shall be deemed to be the profits and gains of such profession chargeable to tax under the head “Profits and gains of business or profession”.
(2) Any deduction allowable under the provisions of┬аsections 30┬аto┬а38┬аshall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed.
(3) The written down the value of any asset used for the purposes of profession shall be deemed to have been calculated as if the assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years.
(4) Notwithstanding anything contained in the foregoing provisions of this section, an assessee who claims that his profits and gains from the profession are lower than the profits and gains specified in sub-section (1) and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (1) of┬аsection 44AA┬аand get them audited and furnish a report of such audit as required under┬аsection 44AB.]
Source: CBDT, Income Tax Act, 1961
ConsultEase Administrator
Consultant
Faridabad, India
As a Consultease Administrator, I'm responsible for the smooth administration of our portal. Reach out to me in case you need help.
