Presumptive Taxation u/s 44ADA Applicability

A person is providing creative services to a Media Company. and is being paid consultancy services as creative head. for the same . Total service income < 75 lakhs in the year. 

Can he get the benefit of Section 44ADA? If not can he go under Section 44AD. 

Thank you 

Replies (6)
Quick Summary
This discussion explores whether a creative consultant, paid for services to a media company with annual income under £75 lakhs, qualifies for presumptive taxation under Section 44ADA. While creative services aren't explicitly listed under 44ADA, the consensus suggests it might be applicable for AY 2024-25 onwards, provided GST compliance is met. If not, Section 44AD is considered as an alternative, depending on relevant business codes.

You can for AY 2024-2025 or thereafter.

Thanks for the reply . But which section 44ADA or 44AD ?  

 

in 44ADA   Creative services professional is not covered under list of specified professions :  So my query is  :                                                                                                                                   1. Can this person go under 44AD ?                                                                                               2. is there any way to fit him under 44ADA.

Soumya - what is the Profession code you use for filing returns for this person in earlier AYs?

Yes he can get the benefit , but not prior to this assessment year
Hello Nikhil . Actually this person was salaried employee in FY 2023-24 from April 24 onwards he has been shifted to be a consultant. The co, he works is a Media / Ad company . and he is a creative person .

got it. as long as the gross receipts remain below 75 lakhs, you may go for 44ADA in this case. But please ensure that the person complies with GST. He should be liable for GST registration by the end of July (assuming that this revenue is evenly spread).

Some people may argue that he may be eligible for 44AD. If you go with that, please ensure that you are covered under the business codes provided under 44AD.

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