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providing accounting services, under which head i'm liabile to pay income tax.

19 March 2018

if a commerce graduate person providing accounting services to his clients, under which head of income tax act liable to pay income tax?

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4 Replies

Aliasgar Samniwala (118 Points)
Replied 19 March 2018

business and profession

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 19 March 2018

Under PGBP....

swapnil harwani (article) (72 Points)
Replied 03 May 2018

Is he required to maintain Books if he opt for presumptive taxation u/s 44ADA ?

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 03 May 2018

Section 44ADA: Presumptive Taxation @ 50% for Professionals

The benefit of Presumptive Taxation which was earlier available only to specified businesses has now been extended to Professionals. Professionals whose Total Gross Receipts do not exceed more than Rs. 50 Lakhs in a financial year can claim benefit of this Section from Financial Year 2016-17 onwards.

The Income of any person making use of this Section would be assumed to be 50% of the Total Gross Receipts for the year. The following are considered as professionals who can make use of this Section:-

LegalMedicalEngineeringArchitectural ProfessionProfession of AccountancyTechnical ConsultancyInterior Decoration

This scheme is applicable only to a resident assessee who is an Individual, HUF or Partnership but not a Limited Liability Partnership firm.

Under this scheme, the assessee would be deemed to have been allowed the deductions under Section 30 to 38. No other deduction for expenses would be allowed to the assessee and it would be deemed that he has already claimed the deductions for all expenses.

The assessee would also NOT be required to:-

Maintain books of accounts under sub-section (1) of Section 44AA, orGet the accounts audited under Section 44AB in respect of such income.

However, in case the assessee claims that the profits and gains are lower than 50% – he would be required to prepare Books of Accounts under Section 44AA, maintain receipts of all expenses and get his accounts audited by a Chartered Accountant.