Applicability of sec 44ADA ON HUF

1. 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.

2. 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.

3. 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.

4. 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.

NO HUF IS NOT ALLOWED TO SEC 44ADA ONLY 44AD IS ALLOWED.
REASON:  There is a difference between section 44AD and section 44ADA. Section 44AD applicable to business income whereas section 44ADA applies to Professional Income. Hence, a HUF can carry on business so as to opt for section 44AD but a HUF cannot carry on a profession. However, as per the original Finance Bill, 2021 introduced in the LokSabha wrongly allowed HUF to opt for section 44ADA.

Thus, Hindu Undivided Family (HUF) is excluded from the eligibility of opting presumptive taxation scheme under section 44ADA. This ambiguity in the initial introduced Finance Bill is cured in the passed Finance Bill, 2021.

NO HUF IS NOT ALLOWED TO SEC 44ADA AS PER FINANCE BILL 2021
FOR BETTER EXPLANATION READ MY REPLY ABOVE.

44ADA return filler should register GST ?