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Presumptive Tax Scheme U/S 44ADA

24 June 2017

Can a professional can claim his total income @ 50% under this head whether it is from gross receipts of professional services or from other sources . Eg : Doctor can claim his all income @ 50% under this head or not? ( Gross Receipts + Income from Lab own lab + Commission Received from other Labs). Please Clarify ?

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CA PRADEEP C B (Prop: Pradeep C & Company Chartered Accountant Palakkad Kerala) (166 Points)
Replied 24 June 2017

Section 44ADA:
Tax liability :
if gross receipts are less than or equal to 50 Lakhs in a financial year, you can opt for this scheme and taxable income = 50% of gross receipts should be declared as income.
if gross receipts exceeds 50 Lakhs in a financial year , you are out of the scheme and tax audit under section 44AB will be applicable.

In respect of commission from other labs for referring patients, please read the following case law:

1. CIT v KAP SCAN AND DIAGNOSTIC CENTRE (P) LTD. ( PUNJAB & HARIYANA).