Presumptive taxation for professionals at 50%
Applicable:- Resident assessee (Individual, HUF, Firm other than LLP) engaged in profession referred to in section 44AA(1)
Presumptive taxation under Section 44AD, which was only available to businesses, has now been extended to include professionals effective from FY 2016-17. This is covered under Section 44ADA. Professional with receipts of Rs.50 lakhs or less can opt for this scheme. This also covers freelancers who do technical assignments such as website design or software development.
SPECIFIED PROFESSIONALS referred to in section 44AA(1)
- Authorized representative,
- Information technology professionals,
- Architectural consultancy,
- Technical consultancy,
- Company secretary, or
- Accountancy, or
- Legal, or
- Interior designer, or
- Film artist,
- Engineering work
Note:- Any deduction allowable under the provisions of sections 28 to 43C shall be deemed to have been already given full effect to & no further deduction under that section shall be allowed.
An assessee who claims that his profit from profession is lower than 50% of the gross receipts and total income exceeds basic exemption limit, shall be required to maintain such Books of Accounts & other documents as required u/s 44AA(1) & get them audited and furnish such audit report u/s 44AB.