Professional Income u/s 44ADA

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the application of Section 44ADA of the Income Tax Act for doctors with gross receipts around 15 lakhs. It explains that opting for 44ADA requires declaring a minimum profit of 50%. Alternatively, if a doctor chooses not to opt for 44ADA and files under ITR 3, they would still need to maintain books of accounts and potentially undergo a tax audit, unless they declare a minimum profit of 50% in that scenario as well.

Javed Memon

Javed Memon (Querist)

27 December 2020 Respected Sir

My Friend is doctor , and his gross receipt is around 15 lakhs Rs. if i File ITR u/s 44ADA then i have to show minimum 50% profit ,
but if i don't opt 44ADA and choose ITR 3 then also i have to show minimum 50% Profit ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 December 2020 In such a case no need to show 50% profit but you need to maintain books of accounts and tax audit applicable.

Message likes : 1 times

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

27 December 2020 Yes if you don't want tax audit than apply 50% MINIMUM PROFIT gross receipts you can file itr 3 or Itr 4 but income should be 50% for non audit case .

Message likes : 1 times

Javed Memon

Javed Memon (Querist)

29 December 2020 Thanks For Replies .

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now