I worked as a contractor through an agency that took a cut of 40% from my income. I'm filing for presumptive tax under 44ADA. Should the reported income be after the 40% cut or before it?
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Is cut taken by agency excluded from income?
Replies (1)
Sec. 44ADA of the act states 'actual consideration' without any expenditures, deductions or cut...
So, if the commission is being paid after receipt of contracted amount, it will not get deducted.
But if agency pays you after deducting cut, then your receipts are net off cut!!
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