If our receipts under section 44ADA is Rs. 34 lakh but our actual expenditure is of Rs 6 lakh then can we show only 50% of income i.e. 17 lakh or not.
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Quick Summary
This discussion clarifies the application of Section 44ADA for professionals. It addresses whether you can declare 50% of your total receipts as income, even if your actual expenses are significantly lower. The thread also highlights potential issues that may arise, such as missing current year financials, difficulties when applying for loans requiring three years of financial statements, and the possibility of qualified audit opinions on opening balances in subsequent years if they were unaudited.
1. Missing out on financials of current year 2. Issue whiling submitting 3 year financials for loan 3. If there is audit ij subsequent year, qualified opinion about opening balances being unaudited.
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