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Section 44ADA - Cash Receipts

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Vishnu R

23 Points Posted on 17 February 2021

Can we offer cash receipts and also cash deposits into the bank account received as part of the profession for which we are offering income u/s 44ADA along with the total receipts out of which 50 percent are taxed?

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Quick Summary

This discussion clarifies how to handle cash receipts and subsequent bank deposits when opting for presumptive taxation under Section 44ADA. It confirms that cash deposited into your bank account should be considered part of your total cash receipts for the profession. For example, if you have £100 in cash receipts and deposit £40 into the bank, the total receipt to declare is £100, assuming the deposit originates from those receipts.

CA SEEMA AGARWAL

Chartered Accountant

201 Points Posted on 17 February 2021

Yes u should definitely consider cash deposit while showing your professional income...cash cash deposit will form part of cash receipt only...suppose ur cash receipt are 100 rs and cash deposit is bank by you is 40 rs then u can take total receipt as 100 only as u can say that 40 rs deposited in Bank is from those 100 rs only