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44ada advance tax timetable

24 March 2023

I filre my return itr 4 under sec 44ADA .(50% presemtive profit)

Is it necessary to pay advance tax in 4 instalments in june,sept,dec,mar or can it be paid as full amount in the month in march all together

Regards

Dilip

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 24 March 2023

It can be paid in Last month, i.e on or before 15 March of the relevant FY.

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C.A. Sandeep Wawhal (Chartered Accountant PGDFM BCom.) (1823 Points)
Replied 24 March 2023

Considering the reply from Dhirajlal Rambhia I would like to add one more point is that any tax paid till 31st March will also be considered as Advance Tax. This is only for those assessee who opted for section 44AD and 44ADA.

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Dilip Khambete (88 Points)
Replied 24 March 2023

If all the advance tax can be paid in one go in march will you please explain what is the meaning of this table given on incometax website

Screenshot attached

Regards

Dilip

Attached File : 3724385 20230324200219 screenshot 20230324 195625.pdf downloaded: 38 times

prasad Nilugal ( GST Practitioner & Accounts ) (14151 Points)
Replied 25 March 2023

Interest applicable for late payment of Advance Tax as per section 234 C(1)(b) of the income tax Act , please refer and confirm.

Dilip Khambete (88 Points)
Replied 25 March 2023

Yes, this is what i worrying about.

If i pay the whole amount in one go in march. Will i be fined with interest because i have not paid according to timetable mentioned previously by me in 4 instalments

Regards.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 25 March 2023

Presumptive Taxation Scheme of Section 44ADA
For whom the presumptive taxation scheme of section 44ADA is designed?
The presumptive taxation scheme of section 44ADA is designed to give relief to small taxpayers engaged in specified profession.
Eligible persons who can take advantage of the presumptive taxation scheme of section 44ADA::
A person resident in India engaged in following professions can take advantage of presumptive
taxation scheme of section 44ADA:-
1) Legal
2) Medical
3) Engineering or architectural
4) Accountancy
5) Technical consultancy
6) Interior decoration
7) Any other profession as notified by CBDT
The Finance Act, 2021 has amended provisions of section 44ADA to define eligible assessee. W.e.f. Assessment Year 2021-22, the benefit of section 44ADA is eligible only in case of assessee who is an:
a) Individual; and
b) Partnership firm other than a Limited Liability Partnership as defined under clause (n) of sub-section (1) of section 2 of Limited Liability Partnership Act, 2008.
Manner of computation of taxable income in case of a person adopting the presumptive taxation scheme of section 44ADA
In case of a person adopting the provisions of section 44ADA, income will be computed on presumptive basis, i.e. @ 50% of the total gross receipts of the profession. However such person can declare income higher than 50%.
In other words, in case of a person adopting the provisions of section 44ADA, income will not be computed in normal manner but will be computed @ 50% of the gross receipts.[As amended by Finance Act, 2 0 22]
The presumptive income computed @ 50% is the final income and no further expenses will be allowed
A person who adopts the presumptive taxation scheme is deemed to have claimed all deduction of expenses. Any further claim of deduction is not allowed after declaring profit @ 50%.
While computing income as per the provisions of section 44ADA, separate deduction on account of depreciation is not available. However, the written down value of any asset used in such business shall be calculated as if depreciation as per section 32 is claimed and has been actually allowed.

Payment of advance tax in respect of income from professions covered under section 44ADA

Any person opting for the presumptive taxation scheme under section 44ADA is liable to pay whole amount of advance tax on or before 15th March of the previous year. If he fails to pay the advance tax by 15th March of previous year, he shall be liable to pay interest as per section 234C.

Maintenance of books of account if a person opts for presumptive taxation scheme of section 44ADA
In case of a person engaged in a specified profession as referred in section 44AA(1) and opts for presumptive taxation scheme of section 44ADA, the provision of section 44AA relating to maintenance of books of account will not apply. In other words, if a person opt for the provisions of section 44ADA and declares income @ 50% of the gross receipts, then he is not required to maintain the books of account in respect of specified profession.
Provisions to be applied if a person does not opt for the presumptive taxation scheme of section 44ADA and declares his income from profession at lower rate (i.e. less than 50%)
A person can declare income at lower rate (i.e. less than 50%), however, if he does so, and his ncome exceeds the maximum amount which is not chargeable to tax, then he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited as per section 44AB.

Refer:: https://incometaxindia.gov.in/tutorials/13.%20tax%20on%20presumptive%20basis%20in%20case%20of%20certain%20eligible%20businesses.pdf

Extract of Page 5 & 6...

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