Salary Income and Professional services income

I was employed in a private company for 3 months (Apr to Jun24)and received around 4Lakhs as gross pay after Income tax deductions. For next 3 months am unemployed. Now am working as a Consultant and will receive remuneration from Oct 24 to Mar24 - around 6Lakhs Gross.

Am I eligible to opt 44ADA.  The LIC and medical insurance falls due in Feb 25 only whereas my employment ended in Jun 24. Will the LIC investements, Medical insurance u/s80D and PF deduction will be considered in computation of total income.

 

Replies (1)

Based on your income details:

 1. You are not eligible to opt for Section 44ADA (presumptive taxation scheme for professionals) for the consulting income received from Oct 24 to Mar 24, as your gross receipts not exceed ₹50 lakhs.

 2. For the unemployed period (Jul 24 to Sep 24), you won't have any income to report.

 3. LIC investments, medical insurance (u/s 80D), and PF deductions can be claimed as deductions from your total income, including your consulting income.

However, keep in mind: - 

LIC and medical insurance premiums paid in Feb 25 will be eligible for deduction in AY 2025-26 (next financial year). - 

PF deductions, if any, during your employment (Apr to Jun 24) will be eligible for deduction in the current financial year (AY 2024-25). 

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