Income classification under heads of income under income Tax

This query is : Resolved

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This discussion clarifies how to classify income received from the same source, specifically salary and consultancy fees, for income tax purposes. It addresses TDS deductions under Sections 192 and 194J, and explores the applicability of presumptive taxation schemes like Section 44AD and 44ADA to consultancy income. The conversation also touches upon ITR filing and turnover limits for these sections.

CA Ajay Chhaya

CA Ajay Chhaya (Querist)
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02 June 2025 An individual receives two types of income from the same concern — salary and consultancy fees — and TDS is deducted under Section 192 and Section 194J respectively. under which head the income to disclose and whether sec 44AD is applicable to Consultancy income ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 June 2025 File ITR 4 with salary income and professional income under section 44ADA.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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03 June 2025 The turnover limit for section 44AD is Rs. 2 crores. It can be extended to Rs. 3 crores if 95% of the total receipts are through online modes. You can file ITR4 as suggested by Honorable member as above