Hi all,
have a query, an assessee started working in the capacity of consultant and is recieving monthly consultancy charges after witholding taxes under 194J. He is a mechanical engineer. The assessee does not have any proof for expenses etc , none at all.
How will it be taxed? is there any mechanism for presumptive taxation? Total receipts are less than Rs 10 lakhs.
Any views/suggestions are welcome.
Presumptive taxation is for business activity u/s 44AD. Since he is in profession provisions of section 44AD relating to presumtive taxation is not applicable.
He can claim expenses like motor car expenses like petrol expenses, local conveyance, general expenses on his luch and their like. But having supportings is very important.
Presumptive taxation is for business income and not for professional income.
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