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Part-time Consultant and Salaried Employee - Presumptive Taxation

Ria (Student) (66 Points)

24 April 2023

I am working at a company as a full-time employee. But I am also working part-time as a consultant with other companies.

Want to know if I it is possible to opt for presumptive taxation under S. 44 ADA for my part time income [Income from PGBP]

And which ITR to file?

Also, what other ways can be there to maximize tax saving in my situation?

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4 Replies

NARENDRA (ACCOUNTS MANAGER) (1492 Points)
Replied 24 April 2023

You can go with ITR 1 or 2 , depending upon your salary & consultation fees. & for Tax savings please click on link below .

https://www.acko.com/tax/easy-ways-to-save-income-tax/

2 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160342 Points)
Replied 24 April 2023

Yes, you can file ITR 4 for the consultation income under presumptive assessment u/s. 44ADA (if eligible under the act), along with salary income.

B Durga Prasad (Student) (175 Points)
Replied 25 April 2023

Yes, it is possible to opt for presumptive taxation under section 44ADA for your part-time income from the profession of consulting. Under this section, you can declare your income at a flat rate of 50% of your gross receipts, and no separate maintenance of books of accounts is required. However, you cannot claim any deductions under section 30 to 38 of the Income Tax Act.

You can file ITR-4 for your part-time income from consulting as it is the return form for taxpayers who have income from business or profession and opt for presumptive taxation under section 44ADA.

To maximize tax savings, you can consider the following:

Claim deductions for expenses related to your part-time consulting income that are not covered under section 30 to 38, such as rent, salaries, interest on borrowed capital, etc.
Invest in tax-saving instruments such as PPF, NSC, ELSS, etc., to claim deductions under section 80C.
Claim deductions for health insurance premiums paid for yourself, spouse, and dependent children under section 80D.
If you have a home loan, claim deductions for the interest paid on the loan under section 24 and for the principal amount repaid under section 80C.
If you are paying rent for your accommodation, claim deductions for the same under section 80GG.

To read more about ITR 4 click here

For more detailed information, visit Swipe Blogs

Swipe Website Link: Swipe