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Is FD interest to be included in income for 44ADA

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Rahul

individual

38 Points Posted on 11 July 2020

Is FD interest income and mutual fund income included in total income for 44ADA
Say my professional earning is 15LPA and FD interest is 2LPA and 1Lakh earned from debt mutual fund redeemed before 3yr, so do i have to pay tax on 50% of total 15+2+1 which is 9 Lakh taxable ?

Replies (5)

Quick Summary

This discussion clarifies whether Fixed Deposit (FD) interest and mutual fund income should be included in the total income for Section 44ADA. The consensus is that these are not business income under 44ADA. Professional earnings taxed at 50% under 44ADA are separate from income from other sources like FD interest and mutual fund gains, which should be declared accordingly.

CA Raj Doshi

Practising CA

5649 Points Posted on 11 July 2020

FD interest income and mutual fund is not to be included for 44ADA. 50% of 15L which is 7.5 L is taxable as business income.

Rahul

individual

38 Points Posted on 12 July 2020

ok, thanks for clarifying

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 12 July 2020

Hi all...

Sorry for attending this query after giving thanks by Querist...

@ Mr Rahul.,

As per Your query Your Professional income Rs 15l. So, You can show the income u/s 44ADA @ 50% profit as PGPB
&
Shiw the FD* interest & MF* redeemed under IFOS...

Note : more details about FD & MF is better to short out the issues...

Rahul

individual

38 Points Posted on 12 July 2020

ok, thanks Mr. Raja , but i am not aware of terms like PGPB and IFOS so cannot understand the reply properly.

Also please let me know what all details are required for FD and MF ?

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 12 July 2020

PGPB - Profit and Gains from Business and profession (We will shown all Business and Professional incomes in this head)

IFOS - Income From Other Sources (some of the income showing in this head like interests)