Tax liability on income of freelancer

This query is : Resolved

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Freelancer earning Rs.10 lakh from overseas contracts plus Rs.7 lakh salary seeks tax treatment. Query covers eligibility for Section 44ADA (50% presumptive income) vs Section 44AD, whether healthcare back-office services qualify as a profession, and whether claiming 44ADA may trigger scrutiny despite CA advice.

SHARMA

SHARMA (Querist)
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22 June 2026 Sir, my son has income of Rs. 10 lacs from aboard as a freelance job on contract basis plus 7 lacs income from salary earned in India.
He is providing service as a healthcare and setting their client health claim. Whether all the amount is taxable of freelancer or 50 percent will be counted for tax purpose. No books maintain.
Or 6 perecent income will count for tax purpose? He is worked backend office and money is coming in account through gateway. My CA is saying if you will go unde section 44Ad, chances are notice. I have a advise which is proof of payment from abroad. What will be the tax liability? For freelancer income portion

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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22 June 2026 Your son can declare 50% of his freelance income (₹5 lakhs) as taxable income under Section 44ADA because he does not maintain books of accounts. Combined with his salary income (after the ₹50,000 standard deduction), his total taxable income will be ₹11.5 lakhs. He should evaluate both the Old and New tax regimes to optimize his tax liability.

SHARMA

SHARMA (Querist)
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04 July 2026 Thanks sir
I have send paper to my CA for ITR filing but he calculate tax 1. 47 lacs considering full amount of freelance income for tax purpose and saying if you will claim under section 44 ADA chances of notice is their and also saying that their should be cash withdrawal or money transfer from that account in which income cane from abroad.
My question is

1. can I claim under section 44ADA (50% income will be count for tax purpose)

2. Should I claim u/A 44AD(6) which is applicable to non professional and only 6 of total receipt will be count for tax purpose only.

3. My son is working after singing contract with abroad person and working his work as a bsckned office worker and making his medical pumlets and vroucher.

4. He will be treated professional or non professional?

My CA is making confusing and worked out tax liability 1.47 lacs on 10 lac freelancer income and 6.50 lacs on salary income.

Please advise. I will be very thankful to you sir.

SHARMA

SHARMA (Querist)
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05 July 2026 Waiting for replies.

44ADA is applicable only for professionals like doctor, engineers, advocate, architects, it professionals etc.
My son nature of work dues not fall under this category. He is working as a freelancer to develop software, deliverable, data entry type work, check correctness of policy in employer system etc.
Please advise can I file under 44AD after showing 25%profit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 July 2026 No, you cannot it under sec. 44AD IT act. Generally such type of IT work can be declared under sec, 44ADA IT act.

SHARMA

SHARMA (Querist)
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08 July 2026 Under 44ada only specified professional such as artichet, doctor, engineer and lawyer, IT engineer comes. My son works dues not come under this so we file ITR u/S 44AD.
Kindly confirm who can file under 44AD?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 July 2026 You cannot select the right business code for such professional activities, which are eligible for sec. 44AD IT act. The section 44ADA is more decided by the professional activity rather then the qualification.

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