44AD & 44ADA-

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This discussion clarifies the classification of income from freelancing (online portals) and examinership/observership (ICAI, ICSI, ICMAI) for tax purposes. The user seeks to understand if these fall under presumptive income schemes like 44AD (other professional services) or 44ADA (technical consultancy/professional receipts). Advice is provided on whether these are considered professional receipts, the implications for TDS rates, and the possibility of filing ITR-3 with salary, business, and professional income.

Ankit Somani

Ankit Somani (Querist)
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24 July 2023 Sir
I am salaried employee which is major income. Apart from it, there are below 2 incomes:-

a) Income from Freelancing ( Online Q&A from Chegg, Bartleby, Transtutor & like these online portals)
b) Income from Examinership & Observership from ICAI,ICSI, ICMAI

I was of the view that

Freelancing Income (a) involves Technical knowledge.
Whether 44AD- Code 16019-Other professional services n.e.c. or
Whether 44ADA- Code 16005-Engineering & Technical consultancy

Please advise.

Examinership fees:- Can this be under Professional Receipt or I need to classify as Other Income in

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 July 2023 Use 44ADA- Code 16005-Engineering & Technical consultancy
It's professional receipt.

Ankit Somani

Ankit Somani (Querist)
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26 July 2023 If it is technical services, then TDS must be deducted @2 percent but here TDS is deducted as 10 percent.

Hence whether examinership fees can be
under Normal Business income or Persumptive.
Further a person can claim Normal Business, profession income as well as Persumptive income ( 44AD and 44 ADA) along with salary and file ITR 3

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 July 2023 It's professional income.
Yes, a person can claim Normal Business under 44ad and profession income under 44ADA along with salary and file ITR 3.

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