Section 44AD or 44ADA

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This discussion clarifies whether an online tutor receiving payments via Chegg, with TDS deducted under Section 194J, should declare their income under Section 44AD or 44ADA when filing ITR 4. The advice suggests that if TDS is deducted under Section 194J, Section 44ADA is the appropriate choice. If you're not a specified professional under 44AA(1), you should either declare income as 'Non-specified professional without books' if covered by 44AA(2), or use Section 44AD otherwise.

CA's Welfare Association

CA's Welfare Association (Querist)
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18 July 2023 I am an online tutor on Chegg where the TDS is being deducted under section 194J and its a contractual agreement where Chegg provides the online platform to solve the question raised by students and Chegg paid the amount per question solved by me at the end of every month. So, while filing ITR 4, Where I should consider this income, under section 44AD (presumptive income) or 44ADA ?

Can we shown the income under 44AD on which TDS has been deducted u/s 194J @10%.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 July 2023 Based on TDS deducted u/s. 194J, you can declare income u/s. 44ADA.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 July 2023 If you are NOT a professional per 44AA(1), comply either of the following

1) if covered u/s 44AA(2), declare income as ' Non specified professional with out books'
2) if not declare income u/s 44AD.

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