Section 44ada of the it act

This query is : Resolved

Abhishek Roy Choudhury (Querist)
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23 April 2017 Dear Sir,
Section 44 ADA which has been inserted from A.Y. 2017-18. In this section if a Doctor whose income from Profession and salary is Rs. 25.00 Lacs and net profit is 50% after deduction of expenses say travelling, tea and tiffin, depreciation on motor car etc. So can he avail the benefit of Sec 44 ADA and file ITR 4 (Sugam) for A.Y. 2017-18 and whether he is not required to maintain books of accounts.

Thanks,
Abhishek.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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23 April 2017 For salary you need to consider full only deduction under head salary is allowed, so you have to declare salary from Income from salary.
Professional income you can declare minimum 50% of gross receipts from profession after considering all deemed Exps including depreciation.

Sunil

Sunil (Expert)
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24 April 2017 There is a grey area for those who receive the monthly retainer and their TDS is done u/s 194J for professional fees.with Form 16A issued. Only this kind of monthly income can be considered as monthly fee. However if there is salary with employer employee relationship and you get TDS u/s 192 with Form 16 issued, then that will have to be shown as income from salary.

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