Special provision for computing profits and gains of profession on presumptive basis

S-44ADA of IT Act, 1961

Notwithstanding anything contained in sections 28 to 43C

Eligible Assessee:
– Resident Individual/ Partnership Firm (other than LLP)
– Engaged in a profession referred to in S-44AA (1)
– Whose total gross receipts </= Rs. 50 L in PY

50% of Total Gross Receipts of such profession (or higher sum claimed to have been earned by the assessee), shall be deemed to be Income u/h PGBP.

Deductions u/s 30 to 38 shall be deemed to have been already given full effect to and no further deduction under those sections shall be allowed.

Though depreciation is deemed to be allowed, assessee needs to compute WDV of FA and maintain records for every PY.

Advance Tax: Once a Year i.e. 15th March of PY.

Partners remuneration, salary, Interest etc. as per S-40(b) shall not be deductible while computing income u/s 44ADA.

Assessee claiming his profits and gains from the profession

1. lower than specified in S-44ADA (1)
&
2. TI > 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 section 44AA and get them audited and furnish a report of such audit as required under section 44AB.