Part-time Consultant and Salaried Employee - Presumptive Taxation

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/

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.

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:

1. 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.

2. Invest in tax-saving instruments such as PPF, NSC, ELSS, etc., to claim deductions under section 80C.

3. Claim deductions for health insurance premiums paid for yourself, spouse, and dependent children under section 80D.

4. 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.

5. If you are paying rent for your accommodation, claim deductions for the same under section 80GG.

To read more about ITR 4 click here

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Yes, 44ADA can apply to your consulting income even if you also have a salary job. The two income types are reported separately in ITR-4: salary income goes into the Schedule S, and consulting income is declared as presumptive professional income under 44ADA at 50% of gross receipts. The only limit is that your total consulting receipts must be below Rs 50 lakh (or Rs 75 lakh if 95% of receipts are through banking channels). The key benefit is that you avoid maintaining separate books of accounts for the consulting side of your income.