Professional Income u/s 44ADA

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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)
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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)
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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.

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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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 .

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Javed Memon

Javed Memon (Querist)
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29 December 2020 Thanks For Replies .

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