Hi ,
I worked for 3-4 years as software freeelancer and paid taxes under 44ADA.
1. In 44ADA 50% of the income can directly tax exempted. e.g. if the income is 30 Lakh, 15 Lakh can be directly exempted.
Now, I paid house rent during this period of 3-4 years. Can I deduct the rent amount from the remaining 15Lakh on which tax is applicable. Which means, Should I pay tax on total 12.5 Lakhs of income if I have been paying rent of Rs. 20 thousand per month
If so, Should I go ahead and claim for refund as I have already paid the taxes for previous years.
2. The reason,I took the house on rent was basically due to the fact , there were law and order problems around my own house. I reported the problems to govt authorities through official channnels, However, the problem was never really resolved. Can I claim any further tax exemption based on these points or does this point atleast ensure I claim the house rent as expense as per point number 1.
Best Regards
Abhishek
CAclubindia
