Sec.44 ADA

205 views 9 replies

Rajkumar Gutti

701 Points Joined August 2018

I am employee from 01.04.23 to 30.09.23
& getting salary.

From 01.10.23 & onward I am working as a consultant as professional work ,& getting remuneration On remuneration tds is deducted.

For F.Y 23 - 24 income tax return followings are my queries.

1) Can I avail full deduction like as standard deduction, HRA & Exemption up to threshold limit as employee salary.

2) Can I required to file two return i.e. Income from salary & Income from professional work or one return

3) For professional work I prefer to choose presumptive Tax scheme u/s 44 ADA

Pl.guide how compute the both income

Replies (9)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197688 Points Joined July 2016

1. Yes.

2. Only one return ITR3/4

3. Eligible.

Rajkumar Gutti

701 Points Joined August 2018

One more question remain sir,
I received provident fund, gratuity after retirement .
Is this exempted , if yes , which section. Is this amount mandatory to show in IT return

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197688 Points Joined July 2016

Gratuity received at the time of retirement Sec. 10(10) IT act

Gratuity received by Government Employees (Other than employees of statutory corporations) Fully Exempt

Death -cum-Retirement gratuity received by other employees who are covered under Gratuity Act, 1972 (other than Government employees) (Subject to certain conditions).

Least of the following amount is exempt from tax:

1. (*15/26) X Last drawn salary** X completed year of service or part thereof in excess of 6 months.

2. Rs. 20,00,000 ( increased the tax exemption limit on gratuity to Rs 25 lakh from earlier 20 lakh)

3. Gratuity actually received. *7 days in case of an employee of a seasonal establishment. ** Salary = Last drawn salary including DA but excluding any bonus, commission, HRA, overtime, and any other allowance, benefits, or perquisite

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197688 Points Joined July 2016

Any payment received from a Provident Fund, (i.e. to which the Provident Fund Act, 1925 applies) is exempt. Sec. 10(11) IT act.

Any payment from any other provident fund notified by the Central Govt. is also exempt.

The Public Provident Fund(PPF) established under the PPF Scheme, 1968 has been notified for this purpose. Besides the above, the accumulated balance due and becoming payable to an employee participating in a Recognized Provident Fund is also exempt to the extent provided in Rule 8 of Part A of the Fourth Schedule of the Income Tax Act. {sec. 10(12) IT act.}