About presumptive taxation

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Ajay Patel

21 Points Posted on 11 December 2023

Hi Fellas,

My wife and I export professional services in the Mental Health industry outside India while our permanent stay is in India. My questions are

can we claim 50% of expenses without keeping books updated under "PRESUMPTIVE TAXATION SCHEME"?
Do we need to register ourselves for GST as the income might increase beyond 20 lacs per annum? I know that GST for export services will be zero but do we need to get GST registration?
How can we save more money and invest the income that can be tax-free?
Which Section of presumptive taxation applies to us? is it 44AD or 44ADA?
Should we create an entity and do business through that channel or we can save more individually?

Please share your expertise as it would be helpful so that we can make informed decisions about our finances.

I appreciate you all who are reading and replying to this message.

Thank you.

Replies (2)

Quick Summary

This discussion explores presumptive taxation for Indian residents exporting mental health services abroad. Key questions revolve around eligibility for Sections 44AD or 44ADA, the 50% expense claim without updated books, and GST registration requirements for export services exceeding 20 lakhs annually. Advice also touches on tax-free investment options, whether to operate individually or through an entity, and clarifies that certain health services may be exempt from GST or zero-rated for exports.

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 11 December 2023

Dear Mr Ajay Patel,

Sorry to Say this. But, This is the Better...

Better consult nearest finance professional. It's the best option to You and Your incomes.

Aashok Kumar Sharma

Finance/Compliance Consultant

75870 Points Posted on 08 November 2026

Exporting mental health services from India:
• Psychologists or counsellors providing services to clients abroad: "medical profession" or allied (if qualified clinical psychologists). If the service is a specified profession, use Sec 44ADA (50%, up to Rs 75 lakh with cash 5% or less). Otherwise, 44AD.
• GST: health care services by clinical psychologists (RCI-registered rehabilitation professionals) are exempt (Notf 12/2017 Sl. 74A). For exports, place of supply is outside India; even if not exempt, it's zero-rated with an LUT.
• Each spouse files their own ITR for their own receipts.