I am working as a software professional with salary of 5Lakhs per annum and I am doing a freelancing job which also fetching me 5 Lakhs per annum(profit is more than 50%). Will I be able to take the benefit of 44AD?
What will be I total Taxable Income?
Do I need to maintain a book of accounts?
Is it legal or illegal to take benefit if I have both salary and professional income?
Thanks
Vignesh
Can you please explain me why am I not able to take benefit of 44ADA? Is it because I have income from salary as well as freelancing? Can I take presumptive taxation only for my freelancing amount?
Obviously you can go with 44ADA as software profession is a specified profession as per act to opt for 44ADA. having salary income doesn't prevent you from taking 44ADA benefit.
Hi Vignesh,
Salary income doesn't cover u/s 44 ADA hence your full salary is taxable i.e 4.50 Lac (5 Lac -50 K standard deduction)
50% of your freelancer income is taxable u/s 44 ADA i.e 2.50 LAC
HENCE YOUR TOTAL TABALE INCOME IS 7 LAC RS. you can take benefits of HRA , 80C, 80D, 80G
IT CAN BE A ZERO-TAX LIABILITY UPON YOU. SO PLAN ACCORDINGLY
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