Audit applicability for claiming deduction for expenses on professional income in India for NRIs

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This query is : Resolved

Quick Summary

An NRI earning professional income in India, who cannot opt for presumptive taxation under Section 44ADA, is seeking clarity on claiming deductions. They specifically want to know if bookkeeping and an audit are required, especially if their professional income exceeds Rs. 50 lakhs. The applicability of these requirements depends on the total professional receipts earned or accrued in India.

REETIK RAJ

REETIK RAJ (Querist)

14 December 2022 Hey team,
I am an NRI and have professional income in India this year.
Since, 44ADA is not applicable to me, I want to claim deductions on my professional income (not more than 50%).

Is auditing also required along with bookkeeping in my case?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 December 2022 Audit would be applicable only if your professional income is above Rs. 50 lakhs.

REETIK RAJ

REETIK RAJ (Querist)

14 December 2022 Thanks for your reply. I have a couple more follow up questions -

1. Is bookkeeping mandatory in this case then since I cannot opt for 44ADA because I am an NRI?

2. Also, can a person do bookkeeping himself or is a CA recommended/required for this?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

14 December 2022 Unless your total professional receipts (received & accrued in India) are known, the query cannot be answered properly.

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