Should i move to filing under presumptive tax 44da?

Dear Friends,

I provide software services - freelance/seft-employed. If my income is 40 lakhs and my actual business expenses are just 2 to 3 lakhs, can i still file taxes under 44DA and pay (40 * 0.5) x 0.30 = 6 lakhs income tax (approximately). Is this perfectly legal? I don't want to do this if it is a grey area.

As of now, I have a private limited company and give out almost 80% of the company's income as salary to myself. I end up paying 30 to 33% tax on my salary. If the above is true and again 100% legitimate, I want to get income in my personal name and move to 44DA starting FY2018-19. 

Thanks.

 

Replies (3)

THE main object is the categery in which u fall, under 44ada is only for professionals, 44ad is for who opt for business, based on it we can arrive it. profession upto 50L  if less apply  receipts basis,  for business more than annual income 2.5 limit, exceeds 8 percentage on t.o, if not covered any one apply 44aa

50% of your gross receipts or any higher amount should be declared under 44ADA. so if you have actual total income of higher than the 50 % of your gross receipts then you have to declare the higher amount
mr.jayesh, it's 44ADA presumptive section for professionals, you can offer 50% under this section, there is nothing wrong in this, but u should get that income from under professional and consultant fees u/s 194j after deducting 10% of TDS only.

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