Home Income tax Individual Income Tax All About New Limits of Income Tax Presumptive Taxation Scheme for Professionals: Section 44ADA

All About New Limits of Income Tax Presumptive Taxation Scheme for Professionals: Section 44ADA

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All About New Limits of Income Tax Presumptive Taxation Scheme for Professionals: Section 44ADA

All About New Limits of Earnings Tax Presumptive Taxation Scheme for Professionals: Part 44ADA

The provisions of Part 44ADA have been made relevant from Evaluation 12 months 2017-18. Finances 2023 has enhanced limits for the Earnings Tax Presumptive Taxation Scheme for Companies (Part 44AD) and Professionals (Part 44ADA). The brand new limits are relevant from Evaluation 12 months 2024-25 (Monetary 12 months 2023-24).

This Article discusses all concerning the Earnings Tax Presumptive Taxation Scheme for Professionals underneath Part 44 ADA.

Revised Limits for Earnings Tax Presumptive Taxation Scheme:

For Part 44AD, the revised restrict from Evaluation 12 months 2024-25 is Rs. 3 crore. Earlier, the identical was Rs. 2 crore. For Part 44ADA, the revised restrict from Evaluation 12 months 2024-25 is Rs. 75 Lakhs Earlier, the identical was Rs. 50 lakh.

Learn All About New Limits of Earnings Tax Presumptive Taxation Scheme For Part 44AD

The Elevated Limits are topic to the situation that 95% of receipts must be by Onlinemode aside from money/ bearer or crossed cheque/ draft.

 

Eligible Assessee:

With Impact from Evaluation 12 months 2021-22, Resident Particular person, Agency (Aside from LLP) is eligible for opting this scheme.

Eligible Professions:

Eligible professions are authorized, medical, engineering or architectural occupation or the occupation of accountancy or technical consultancy or inside ornament or promoting or such different occupation as is notified by the Board for the needs of part 44AA or of this part;

Deductions allowed u/s 44ADA

All deductions allowable underneath the provisions of sections 30 to 38 together with Depreciation shall, are deemed to have been already given full impact to and no additional deduction underneath these sections shall be allowed. Even Wage and Curiosity to Companions should not allowed as deductions.

Additional, it is going to be assumed that disallowance if any u/s 40, 40A and 43B has been thought of whereas calculating the estimated Earnings u/s 44ADA.

Earnings to be declared within the Earnings Tax Return (ITR):

If the above situations are glad, a sum equal to 50 % or extra of the whole turnover or gross receipts of the assessee needs to be declared because the earnings of the assessee.

Can the Assessee Choosing Part 44ADA voluntarily declare increased Earnings in ITR?

Sure, the assessee choosing Part 44ADA can voluntarily declare increased earnings within the ITR.

Can Assessee Declare Decrease Revenue

Sure, however he’s required to:

a.) Keep Books of Accounts u/s 44AA,

b.) Get his Books of Accounts audited u/s 44AB.

Upkeep of Books of Accounts:

Part 44ADA doesn’t exempt professionals from the upkeep of Books of Accounts. Professionals choosing Presumptive Taxation Scheme is required to keep up Books of Accounts as per Part 44AA(1).

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