Section 44ADA Query - 75 Lakh Limit Clarification

ITR 177 views 3 replies

Can I use Section 44ADA for gross receipts up to 75 lakhs if 100% of my payments are via bank transfers?

ClearTax states:

"The benefit of section 44ADA can be taken only by those specified professionals whose annual gross receipts are under Rs.50 lakh (This limit is Rs.75 lakh, provided 95% of the receipts are through recognised banking channels)."

My receipts will be around 60 lakhs this year, all through banking channels. Any documentation needed beyond bank statements and BIRC certificate to prove this? Any recent changes to this provision?

Thanks!

Replies (3)

If total 60 lakhs are through banking channel, you are eligible for sec. 44ADA IT act.

Invoices with GST charges will also be required along with bank statement and payment acknowledgements.

Thank you for clarifying! Just to be 100% certain - since my entire 60 lakhs (approx) will be through banking channels and I qualify for Section 44ADA:

I can declare 50% of gross receipts as income, which would be 30 lakhs in my case (50% of 60 lakhs), correct?

Yes, that is minimum as per the rule. You can declare even more than that.


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