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Can internship salary come under 44ADA?

NaviN (Consultant) (120 Points)

29 December 2019

I've seen this answer, but my query is different. I have been filing taxes under 44ADA for two years, and as per the law I need to continue filing under 44ADA for three more years. This was income as a freelancer. Now I have an offer to do an internship at a startup. If I take that offer, can the internship salary be filed under 44ADA?

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3 Replies

RAJA P M ("Do the Right Thing...!!!") (127249 Points)
Replied 30 December 2019

If You are received as Salary then You can show it as salary...

5 years restriction not applicable to 44ADA.

Vinayak Kulkarni (3 Points)
Replied 30 December 2019

Amount received under internship is considered as stipend or salary???
if its considered as stipend then is it taxable??

Kapadia Pravin (17249 Points)
Replied 30 December 2019

As what profession you filed ITR under 44ADA ?

only prescribed professions are covered under 44ADA

--- Now since you do not have 44ADA type of income where is the question of 44ADA filing.

Retainership fees if start up company pays you in the form of salary and TDS under 192 then it's salary income.

But if it's paid in the form of professional fees and TDS under 194J then its professional income .

Such professional income may fall either under 44AD or 44ADA.

Just by name Stipend, income does not become tax free.

Happy to know that you are Keen learner about income tax (as per your profile).