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44ADA

Abhinandan (student) (101 Points)

22 January 2018

Can a salaried professional (Doctor) also working in his own clinic in the evening opt for filling income tax under 44ADA ..????

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11 Replies

(Guest)

yes he can do so but his total gross receipts not exceed 50000/- in order to claim 44ADA

Rachit bansal (No) (22 Points)
Replied 22 January 2018

50 lakh brother👍

Abhinandan (student) (101 Points)
Replied 22 January 2018

so even a employee can opt to file under 44 ada ??

Palak Rawal (Student CA FINAL) (388 Points)
Replied 23 January 2018

I don't think sec 44ADA can be availed in respect of salary.

JOJY THOMAS (CHARTERED ACCOUNTANT) (295 Points)
Replied 23 January 2018

Salary Income- Normal Provisions will apply

Professional Income- Benefit 44ADA can be availed to avoid Tax Audit Complications. Assuming that his taxable income exceeds the basic exemption limit

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 23 January 2018

Income from any employer will be taxable under head ' Income from Salary '

Income from practice by and individual will be taxable under PGBP

Income of a person is taxable depending upon source of income and not who is deriving in which capacity

1 Like

Prajjwal Kaushik (Finance Professional) (6216 Points)
Replied 23 January 2018

Persons engaged in any of the following professions:

• Legal

• Medical

• Engineering

• Architecture

• Accountancy

• Technical consultancy

• Interior decoration

• Other notified professionals

o Authorized representatives

o Film Artists

o Certain sports related persons

o Company Secretaries and

o Information technology

Therefore, he can apply section 44ADA to compute income from PGBP. Also, please note that this limit is only applicable upto Rs. 50 Lacs.

Palak Rawal (Student CA FINAL) (388 Points)
Replied 23 January 2018

It is said professions but salary can't be said as profession. so I think salary will be taxable as per provisions of section 17 and income from clinic will be taxed as per sec 44ADA

Vimal Goyal (14 Points)
Replied 06 January 2020

Please guide whether a) the limit of Rs. 50 lakhs is applicable to Aggregate of salary+clinic income OR b) Salary is taxed separately and 50 Lakhs limit is applicable to professional income under 44 ADA (excluding salary income)?

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 07 January 2020

Yes salary is taxable under the head ' Income from Salary'

and Clinic income is taxable under the head 'PGBP'

within the limit of 50 lakhs salary will not be included

Vimal Goyal (14 Points)
Replied 09 April 2020

Originally posted by : Rakesh Bandal
	Yes salary is taxable under the head ' Income from Salary' and Clinic income is taxable under the head 'PGBP' within the limit of 50 lakhs salary will not be included

Thanks. Grateful if you could please refer to the relevant provision of citation where 44 ADA annual income limit of Rs. 50 lakhs excludes the salary income.