194j fees for professional or technical services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2018 My uncle he is a pensioner and he is working in NHAI as PRO. The NHAI deducted tds under 194J fot the financial year 2017-18. He wants to file IT return. NHAI Total receipts as per 26AS is Rs.453484/- and TDS is Rs.45351/-.
Can he file his return under 44ADA? Please Suggest me to help him.

Expert : Anonymous

Expert : Anonymous (Expert)

06 July 2018 What is his nature of Work?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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06 July 2024 For your uncle, who is a pensioner and also earns income from NHAI as a PRO with TDS deducted under Section 194J, filing his income tax return under Section 44ADA is a consideration. Here’s an overview to help you understand if he can file under Section 44ADA and the implications:

### Section 44ADA Overview:

1. **Applicability:**
- Section 44ADA is applicable to professionals whose gross receipts do not exceed Rs. 50 lakhs in a financial year.

2. **Professionals Covered:**
- It covers specified professions including legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, and other professions notified by the CBDT.

### Analysis for NHAI PRO Income:

1. **Nature of Income:**
- Income from NHAI as a PRO likely falls under the category of professional income covered by Section 44ADA.

2. **Eligibility Criteria:**
- To avail of Section 44ADA, his gross receipts from the profession should not exceed Rs. 50 lakhs in the financial year.

3. **Calculation for Eligibility:**
- Based on the information provided:
- Gross receipts as per 26AS: Rs. 4,53,484/-
- TDS deducted: Rs. 45,351/-

- Since the gross receipts are below Rs. 50 lakhs, he is eligible to opt for presumptive taxation under Section 44ADA if he meets other criteria (like not maintaining books of accounts).

4. **Advantages of Section 44ADA:**
- Under Section 44ADA, he can declare 50% of the gross receipts as his income and is not required to maintain detailed books of accounts.
- The income computed under Section 44ADA is considered final and no further expenses are deductible.

### Steps to File:

- Your uncle can file his income tax return (ITR) using ITR-4 form.
- He should choose Section 44ADA in the form and declare 50% of the gross receipts (Rs. 4,53,484/-) as his professional income.
- Since TDS of Rs. 45,351/- has already been deducted, he should ensure to report this correctly in the ITR to claim credit for the TDS.

### Consultation:

- For specific advice tailored to his situation, it’s advisable to consult with a tax professional or CA who can review all details, including any other sources of income, and provide accurate guidance for filing his income tax return under Section 44ADA.

By following these steps, your uncle can appropriately declare and file his income tax return, taking advantage of the provisions under Section 44ADA for professionals.

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