I need know the tax implication of Presumptive income declaration

ITR 1019 views 6 replies

Ajesh

Accountant

28 Points Joined November 2019

I need to know the tax implication of below situation

I have annual salary income of 3 Lakhs. In addition to that I am doing freelance video editing service in the free time.i am serving video editing works through online marketing place which is stuated in United States. It is like a e commerce site which is used selling services. So am getting money from outside India. So I am getting around 5 Lakhs yearly as freelance income.

My doubt is can I declare the above mentioned freelance income as presumptive income Section 44 AD. Is there any implication for this. So that I can declare 6% of 5 Lakhs as income from business.

Any one please advise me

Replies (6)

Kapadia Pravin

17264 Points Joined December 2018

I think video editing service may fall under specified Profession under Rule 6F of Section 44AA (3) and hence it will be 44ADA and not 44AD.

Under 44ADA you have to show minimum 50% or actual whichever is higher , as taxable income

Ajesh

Accountant

28 Points Joined November 2019

Sir. Video editing meaning. I am providing freelance video editing work through online marketing place like e commerce site which is used for selling services. It is situated in United States. So income received from out side india.

Sir,

Can you please explain . which categories of income falls under Presumptive income category in ITR ?. I have read in somewhere else this is fall under 44AD that why..