I read your analysis on sec 44ADA applicable to professional. I need to clarify that if gross receipts of professional is 30 Lakhs and total expenditure is just 5 lakhs and has a balance of 25 Lakhs needs to show the profit as 15 Lakhs (50% of gross receipt) or 25 Lakhs (Balance in the account at the end FY).
The 50% of the receipts is deemed to be income under the law. There is no harm if you declare higher percentage of income than that stipulated in law. But it is not necessary. Even if your actual expenditure is 5 lakh you can opt for offering income at 50 percent. There is no harm
If you opt for presumptive taxation u/s 44ADA, then you just have to show 50% of your gross receipts as income. It's on you whether to go for Section 44ADA or to Declare higher income. But if you opt for presumptive taxation u/s 44ADA, then you will not be eligible to claim any other deduction from such income computed. (i.e. 50% of gross receipts)
CAclubindia
