Section 44ADA Salary and Professional Income

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Niranjan Sanka

Contracts Manager

23 Points Posted on 10 April 2023

Dear Team,

My salary income is 23 lacs and professional income is 48 lacs. Can I claim presumptive taxation for professional income under Section 44ADA and file ITR4?? So, net taxable income is Salary uncome 23 lacs and 50% of professional income 48 lacs = 47 lacs which is under 50 lacs for ITR 4!! Please clarify.

Replies (3)

Quick Summary

This discussion clarifies the use of Section 44ADA for professional income when you also have salary income. While you can opt for presumptive taxation on your professional earnings if eligible and within the receipt limits, having both salary and professional income means you cannot file using ITR-4. Instead, you'll need to use ITR-3. Within ITR-3, you can still apply Section 44ADA to your professional income, declaring 50% of receipts as taxable, while salary income is reported separately. The 75 lakh limit for 44ADA pertains solely to professional receipts, not your total income.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 10 April 2023

Yes, you can declare the income u/s. 44ADA, if your profession is eligible for the scheme, as your total receipts are 48 lakhs, which is within the prescribed limit.

You don't need to add salary income to your professional income for such eligibility.

Tax Garden

Tax Consultant

2084 Points Posted on 22 May 2026

When you have both salary and professional income in the same year, you cannot file ITR-4. You must use ITR-3, and within ITR-3 you can still opt for Section 44ADA on the professional portion (showing 50% of professional receipts as taxable income). Salary goes in Schedule S as usual. The 44ADA limit of 75 lakh applies only to your professional receipts, not the combined income. One thing to watch: with salary TDS already done by the employer, you may still owe advance tax on the professional income if that liability exceeds 10,000 for the year. Our [Section 44ADA guide for FY 2026-27](https://taxgarden.in/blog/section-44ada-presumptive-taxation-professionals-fy-2026-27) covers the combined income scenario in detail.

Aashok Kumar Sharma

Finance/Compliance Consultant

77999 Points Posted on 06 November 2026

Correction: you can use ITR-4 here, if the conditions are met.

• ITR-4 (Sugam) is available to a resident individual with total income up to Rs 50 lakh, having salary or pension, one (or two, from AY 2025-26) house property, other sources, and business or profession income under Sec 44AD/44ADA/44AE.

• Your total income: salary Rs 23 lakh + 44ADA income Rs 24 lakh (50% of Rs 48 lakh) = Rs 47 lakh, before deductions. That is within Rs 50 lakh, so ITR-4 is permitted.

• ITR-4 is not allowed if total income exceeds Rs 50 lakh, or if you have capital gains other than 112A LTCG up to Rs 1.25 lakh, foreign assets or income, unlisted shares, are a director in a company, or have brought-forward losses. Check these.

• 44ADA eligibility: specified profession under Sec 44AA(1). Gross receipts are Rs 48 lakh (within Rs 50 lakh, or Rs 75 lakh if cash receipts are 5% or less).

• Advance tax on the professional income: 44ADA allows a single instalment by 15 March. But salary TDS won't cover the professional income tax, so pay by 15 March to avoid 234B/C interest.