Presumptive taxation for both salary and professional income

I am working as a software professional with salary of 5Lakhs per annum and I am doing a freelancing job which also fetching me 5 Lakhs per annum(profit is more than 50%). Will I be able to take the benefit of 44AD?
What will be I total Taxable Income?
Do I need to maintain a book of accounts?
Is it legal or illegal to take benefit if I have both salary and professional income?


Hey @Vignesh054 ,

To opt for Presumptive Taxation Scheme under Section 44ADA, the following two conditions should be satisfied:

  1. The gross receipts of the profession should be less than or equal to INR 50 lacs.
  2. The taxpayer should report 50% or more of the gross receipts as income in the ITR.

Hence, you can take the benefit of 44ADA for professional freelancing income and don’t need to maintain books of accounts.

Further, there’s no harm to take benefit and both salary & professional income has to be reported in ITR.

Here, you can read below article for more insights about presumptive taxation and calculation of taxable income:

I hope, this helps :slightly_smiling_face:

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Thank you so much.