Doubts regarding Articlesship

I am a direct entry student. I am going to complete 1 year articleship training in November (one year will be completed in nov end). I cant able to focus on my study, so I decided to take a break of 6 months and will clear may24. my principle not giving that much leave.so I asked for a termination. he also agreed. my query is by taking termination now, then I want to continue my articleship after may 24 exam...is it possible ?... is there any hurdles ?
I heard that if I take termination now, then I have to join in any other form within 3 months otherwise my articles will be in trouble. But I didn't see anything like that till now. I just need your guidance..and please let me know the decision I made was good or not.
thanks in advance.

Hey Arora! Great questions — these sections can be confusing. Let me clarify the differences and help you with your specific scenario.

Overview of Sections 44AD, 44ADA, and 44AE (Presumptive Taxation)

Section	Applicability	Business Type	Turnover Limit	Who should use it?
44AD	Small businesses (other than professionals)	Eligible businesses like trading, manufacturing, or services (except professionals)	Up to ₹2 crore turnover	Small businesses except professionals/agency
44ADA	Professionals	Professionals covered under section 44AA(1) like lawyers, doctors, architects, advertising agencies (mostly professionals)	Up to ₹50 lakhs gross receipts	Professionals including some advertising agencies
44AE	Transporters	Transporters owning not more than 10 goods vehicles	Based on number of vehicles	Transport business

Your Scenario: Advertising Business / Agency

Is advertising business covered under 44AD or 44ADA?
- This depends on whether it’s a professional service or a business.
- If it’s advertising agency services (agency work with clients), usually it’s considered a professional service and falls under 44ADA.
- If it’s purely sale of advertising space (like you selling internet advertising space) without agency functions, it may fall under 44AD as a business.
Your SAC code: 998365 (Sale of Internet advertising space)
This generally classifies as business income, not professional services.
GST & Income:
Since GST registration was surrendered and you had limited sales (₹8 lakhs) with no books maintained, presumptive taxation under 44AD seems appropriate.
Websites saying agency work is excluded from 44AD:
True, agency services (i.e., professional services where advice, consultancy is involved) come under 44ADA. But if you are just selling space, it’s more like business income (44AD).

About your Profit & Filing:

₹8 lakhs turnover and ₹34,000 net profit on presumptive basis sounds aligned with 44AD (8% of turnover is presumed profit, here ₹64,000, so ₹34,000 actual is less but you pay tax on presumptive amount).
If you choose 44ADA, presumptive profit is 50%, but your income is small, so 44AD may be more beneficial here.

Filing ITR:

If you select ITR-4 under 44AD or 44ADA, you can still declare STCG (Short Term Capital Gains) separately in the same return.
STCG (like from sale of debt mutual funds) is separate from presumptive business income and should be reported in the ITR-4 form in the appropriate schedule (Schedule CG).

Summary:

Question	Recommended Approach
Advertising agency or business?	Since you sell internet ad space (SAC 998365) without agency service, use 44AD.
Filing ITR	Use ITR-4 with presumptive income under 44AD.
STCG inclusion	Yes, include STCG separately in ITR-4.