08 May 2019
A professional has receipts of Rs 50 Lacs in bank during a financial year and the balance at the end of the year in the bank is Rs 40 lacs. Now he wishes to file the return u/s 44ADA - Presumptive tax scheme for professionals.
Can he file showing his taxable income @ 50% of receipts i.e. Rs 25 Lacs or the balance as appearing in the bank of Rs 40 Lacs. Would there be any adverse implication if he files the return showing the taxable income Rs 25 Lacs but his savings are more.
08 May 2019
Gross receipts have nothing to do with balance appearing in current account or savings account. for section 44ADA 50% of gross receipts from profession needs to be taken into account.
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