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Salaried and Freelance Work IT Planning

Rajeev (ABC) (44 Points)

12 December 2019

I have Salaried Employee and getting a salary of 28 LPA. I am claiming the following deduction

1) Housing Loan Principal
2) Housing Loan Interest
3) HRA
4) NPS etc

I am starting a Freelancing Job where I will earn 36 LPA Freelancer work is related to Software/IT Project for a US Company.

My Question is

1) Whether I can Opt for 44ADA ?
2) Can I continue my Salaried Deductions, if I am eligible for 44ADA ?
3) My Wife will also be working with me in the Project. How can I distribute the amount between us ? She is qualified to work on the Software Project.
4) Do I have to apply for GST ? What will be the GST amount I need to Pay ?
5) What will be your suggestion to get the best benefits

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1 Replies

sanjith kotni (Articled assistant) (663 Points)
Replied 12 December 2019

Yeah you are eligible for claiming the presumptive taxation benefits as per sec 44ADA as you are coming under the definition of professionals under sec 44AA ,who are eligible for 44ADA.
But the total professional receipts from all the projects should not exceed 50 lakhs per annum , otherwise you are not eligible for 44ADA .
so make sure that distribution is made to get the benefits of being eligible for 44ADA .your wife is also a specifies professional eligible for claiming under 44ADA .
You need to apply for registration under GST ,if the threshold limit of turnover is exceeding ,please refer sec 22,24,25 of gst act for applicability of registration under GST.