I'm a independent professional and my income is less than 50 lakhs. I'm eligible for 44ADA but I have one query, If my expense is about 20% and my profit is about 80%, am I still eligible for 44ADA and can claim 50% profit?
Is there such rules like I must have at least 40% expense to avail 44ADA benefit or anyone regardless of their expense (even if it's 5%) can can claim 50% profit under 44ADA?
Thanks!
There is no cap on expenditure. The act says, minimum profit margin should be 50%, it can be higher as declared by assessee.
| Originally posted by : Dhirajlal Rambhia | ||
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There is no cap on expenditure. The act says, minimum profit margin should be 50%, it can be higher as declared by assessee.
Thanks for your reply sir. To clarify, If I have 80% profit of my income, I need to declare 80% profit under 44ADA or I need to declare flat 50% profit regardless of my profit margin? |
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IT IS UP TO YOU, ANYTHING ABOVE 50% WILL BE ACCEPTED.
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