Presumptive taxation

• Tax Scheme: Use Section 44AD (Presumptive Business), declaring at least 6% of ₹7 Lakhs as profit, as the client deducted TDS under Section 194C and IPR was transferred.

• Business Code: Select code 21002 (Motion picture, video and television programme production...).

• ITR Form: File ITR-4 to declare his Salary, Business Income, and Bank Interest together.

44ADA vs 44AD: the decision hangs on whether the work qualifies as a listed profession or a business contract.

44ADA covers specified professions: legal, medical, engineering, architectural, accounting, technical consultancy, interior decoration, and notified categories including film artists (directors, producers, performers, lyricists). If the video song album work involved creative direction or artistic contribution, 44ADA could apply with DEEMED PROFIT OF 50% (Rs 3.5 lakh on Rs 7 lakh receipts).

But the client deducted TDS under Section 194C at 2% (contractors), not Section 194J at 10% (professionals). This is a strong signal the client treated it as a BUSINESS CONTRACT. In that case, 44AD is the appropriate scheme.

Under 44AD: minimum declared profit is 6% of receipts (Rs 42,000) or 8% if any cash receipts. Business code 21002 (motion picture/video production). ITR-4 handles salary income and bank interest alongside this business income in the same form.

For how to combine salary and business income in ITR-4 and the full 44AD vs 44ADA comparison, this [freelancer and consultant income tax guide AY 2026-27](https://taxgarden.in/blog/freelancer-consultant-income-tax-filing-guide-india-ay-2026-27) has the decision tree.

Thank you so much for the quick clarification.... 🙏