MBA working as a Consultant - Applicability of 50% Presumptive taxation under Sec 44ADA

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An MBA with over 25 years of experience in trade finance and business management consultancy is seeking clarification on tax matters. Specifically, they want to know if their role qualifies as 'Technical Consultancy' under Section 44AA(1) and if they need to maintain books of accounts. They are also enquiring about the eligibility for the 50% presumptive taxation benefit under Section 44ADA.

Sudha Iyengar

Sudha Iyengar (Querist)

30 January 2022 Hello,

My husband has recently joined an NBFC finance company as a Consultant. He is an MBA and his services are related to Trade Finance and Business Management Consultancy. He has 25+ years of experience in his field.

I have two questions:-
1. Can his profession be classified as a 'Technical Consultancy' under Sec 44 AA (1)? If yes, is he supposed to maintain books of accounts?
2. Is he allowed to take benefit of 50% Presumptive taxation under Sec 44ADA (Code-16013)?

Regards

c.bakshi

c.bakshi (Expert)

31 January 2022 yes, you can file the return u.s 44ada for fees for rendering technical services. if you opt 44ada, then no need to maintain books of accounts as per the provisions of Section 44ADA.

Sudha Iyengar

Sudha Iyengar (Querist)

31 January 2022 Thank you very much.
Regards

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