Applicability of sec 44ADA ON HUF
megha Aggarwal (156 Points)
13 March 2023
does sec 44ADA IS also applicabe on huf also?
megha Aggarwal (156 Points)
13 March 2023
CA Rakesh Ishi
(Working at Private Company)
(7770 Points)
Replied 13 March 2023
Applicability: Section 44ADA applies to resident individuals, Hindu Undivided Families (HUFs) and partnerships engaged in certain specified professions. The professions covered under this section include legal, medical, engineering, architecture, accountancy, technical consultancy, and interior decoration.
Presumptive Taxation: Under Section 44ADA, professionals can calculate their taxable income based on a presumptive taxation scheme. The taxable income is presumed to be 50% of the gross receipts of the profession during the financial year. This means that the taxpayer is not required to maintain books of accounts and can pay tax based on the presumptive income.
Deductions: The presumptive taxation scheme under Section 44ADA does not allow for deductions against the taxable income. However, deductions for any investments, savings or expenses that are allowed under Section 80C to 80U can be claimed.
Advance Tax and Tax Filing: Taxpayers under Section 44ADA are required to pay advance tax by March 15 of the relevant financial year. The tax return for such taxpayers must be filed by July 31 of the assessment year.
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