For Professional/Freelancer

Anyone who offers professional services is considered a professional like Technical Consultant, Doctor, Freelancer etc.

Professionals & Freelancers having annual gross receipts below ₹50 Lakhs and declaring income at 50% or above of gross receipt.

Anyone wants to declare Income less than 50% of gross receipt then audit is mandatory (Audit fee is not included in this plan). For audit detail, contact us.

Following Profession defined U/s 44ADA, this profession can opt Presumptive taxation scheme –

• • Legal
  • Medical
  • Engineering or Architectural
  • Accountancy
  • Technical Consultancy
  • Interior Decoration
  • Authorized Representative
  • Film Artist (incl. Actor, Cameraman, Director, Music Director, Art Director, Editor, Singer, Lyricist, Story Writer, Dialogue Writer and Dress Designer.)
  • Company Secretary
  • Information Technology Professionals

Section 44AD is only applicable for 

1. 1. Individuals i.e. Proprietor/ Proprietorship Firm 
   2. Hindu Undivided Family (HUF) 
   3. Partnership Firm 

It is not applicable for any form of entity like Company, LLP etc.

No, the total value of all the Professional Services will be added for the purpose of benefit under Section 44ADA.

GST will apply when turnover of the business or the gross receipts of the profession exceeds ₹20 lakhs (Limit is ₹10 lakhs for the North Eastern States).

No, it is not applicable for Income earned from Salary, Rent, Capital Gains, Other Sources

No, NRI is not eligible for presumptive taxation. Presumptive taxation Scheme is only applicable to a resident Indian who is an Individual, HUF or Partnership Firm.

Save tax: Usually professional do not have much expenses to declare. By declaring 50% of income as profit and balance 50% as expense, a lot of tax saving can be done.

Yes, but then you are required to maintain books of account and also required to get the books of accounts audited by Chartered Accountant.

Yes, you can choose to withdraw presumptive taxation at any time. There is no restriction on a professional that he has to opt for Presumptive Taxation in all the years.

No proof is required to establish your eligibility to opt for presumptive taxation for professional.

Yes, if your tax liability exceeds ₹10,000 for a particular financial year, then you are liable to pay advance tax.