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What are tax saving options and eligibility of 44ADA for Fine Artist

Tax queries 367 views 1 replies

Vipul

Fine Artist

21 Points Posted on 01 February 2021

Hi, I'm (25M) an Indian Artist specializing in paintings on canvas and heavy paper mediums. I sell my original works and limited edition reproductions through my website. Also do custom commissions but it is not my main source of income. Most of my artworks are sold internationally. I have registered my profession as business and also have necessary permits like IEC code. I work from home studio and do all work by myself so maybe it can be counted as freelance?

My yearly income range from 8 to 9 lakhs out of which 1 lakh goes towards material cost and extra 75,000 to 1 lakh or sometimes even more for international shipping cost. Also have patreon following page which generates me donations of about ~40,000 monthly.

Firstly, I would like to know, am I eligible for 44ADA. Also want to know money saving benefits or specially saving on business expenses like international shipping cost for people in such profession. Or any tax reduction route I should take?

Thank you for your time.

Replies (1)

CA Ankith Jain

Chartered Accountant

973 Points Posted on 04 February 2021

No the painting profession is not covered under 44ADA . Well, you could take deduction of all the expenses which are directly linked to painting business and also you could take normal route for tax deduction i.e 80C, 80D, 80CCD. If your income is around 8 lakh, then claim deduction of around 1Lakh on shipping cost and then claim 80G deduction, you tax would be zero.