44ADA

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 

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

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.

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)?

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

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.