Presumptive Taxation u/s 44AD and 44ADA

Income Tax Income from Business or Profession
142

Thanks @Muskan_Balar for your answer.

Could you please give reference/links to prove that Salary/remuneration deduction is allowed after 50% profit under 44 ADA for partnership firm?

Thanks in advance.

143

Waiting for update.
Thanks

144

Hello @love4u_now

No deduction is allowed after computing Income under the head PGBP at 50% of Gross receipts under section 44ADA.

Thus, it is deemed that remuneration to partner and interest if any has been covered in the 50%.

Thank you.

145

Hi, im a future and option trader. im looking to find ways to reduce tax and learned about Presumptive Taxation, so i have a question about it.

lets say if fno traders turnover is 1crore and made profit of 50 lakh, so under Presumptive Taxation does he have to pay tax only for 6% of 1cr, so his income reported as only 6lk not 50lk under this scheme?

146

Hello @Joe

Section 44AD states that taxpayer needs to report profit higher of the 2 below:

  1. Actual Profit
  2. 6% of Turnover

Since F&O trading is an online activity where actual profit can be easily derived from the broker statements, we would not advise to opt for Section 44AD.

We recommend preparing books of accounts and filing ITR 3 for F&O business.

Thank you.

147

Thanks @AkashJhaveri for your response

Your answer is contradicting with what your colleagues is saying here

Can you pls reconfirm the answer. Thanks

148

I have availed of the benefit of Sec 44AD and filed my returns for AY 2023-2024 for my small business income.

I am now planning to start trading in Futures and Options on a small scale and do not expect the total income or Turnover to increase the threshold of availing the benefits under Sec 44AD.

Apart from the F&O income, my business income from other sources will also continue. Thus, under the above situation, can I still continue to file my returns under Sec 44AD?

149

Hello @INDTAT,

The benefit of Section 44AD is ideally available to small taxpayers who are not able to maintain their books of accounts regularly.

However, in the case of F&O trading, the books of accounts can be easily maintained in the form of broker reports. Hence, section 44AD cannot be availed of in the case of F&O trading business.

Hence apart from F&O trading, you can avail 44AD benefit for other businesses.

Hope this helps!

1 Like
150

Thank you Niyati for your reply.

1 Like
151

Do you have any option to avail offline services of a CA for Return preparations & Audits purpose?

152

Hello @INDTAT

No, Quicko is an online tax planning and filing platform, you can avail of our services online.

153

My daughter has income from profession ( as trainer) from the private training and consulting company that works with individuals, corporates, and educational institutions. Monthly income is being credited to her savings account. She has simple one page contract. No TDS and any other benefits applicable. She also holds few Fixed Deposits with bank which earns interest. Please confirm whether she can file ITR-4 and presumptive income applies in her case. There is no Profession Code ( Particularly for Education Training / Freelancing) available in the ITR - 4.

154

Hello @Srikanth

Yes, your daughter is eligible to file ITR-4 by opting for the Presumptive taxation scheme provided her total gross receipt does not exceed 75 Lac.

You can select the code which best describes the services provided by her under 44ADA.

Hope this helps!

155

Thanks a lot maam. Much appreciated