Is Section 44AD applicable to professionals?
Section 44AD applies to all businesses except the business of plying, hiring or leasing goods. As Section 44AD specifically mentions the word business, therefore section cannot be applied in case of professionals. Section 44AD only applies in case of Individuals, Partnership & HUF provided they are Resident in India.
Can a professional file ITR-4?
It will be applicable to the professionals, whose total gross receipts does not exceed Rs 50 lakhs in a financial year.
What is difference between ITR-4 and ITR 4S?
What is the difference between ITR-4 and ITR-4S? ITR-4 is to be filled by individuals/HUFs/small businesses having income from proprietary businesses or profession. In case the presumptive income method is applicable to you, you must file ITR-4S.
Under which return a professional having professional income only can file his return?
For professionals, government has introduced a new scheme of presumptive taxation (Section 44ADA), under which professionals can file their return declaring 50\% of their gross receipts (which must be up to ₹50 lakhs) as income, and after deducting section 80 deductions, professionals need to pay tax on balance total …
What businesses are covered under 44AD?
The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses: ➢ Business of plying, hiring or leasing of goods carriages referred to in section 44AE. ➢ A person who is carrying on any agency business.
What is agency business as per section 44AD?
• Business of plying, hiring or leasing of goods carriages. • Agency business. • Business in which the assessee earns income in the nature of commission or brokerage. • The person carrying on any profession specified under section 44AA.
Is it compulsory to opt for 44AD?
Ans – Section 44AD is facility i.e. option available to the assessee it is not mandatory for eligible assessee to opt for Section 44AD.
Who is not eligible for 44AD?
The following persons are not eligible to opt for the presumptive taxation scheme of Section 44AD: Any firm or person that has made a claim for deductions under Sections 80HH to 80RRB or under Sections 10AA or 10A or 10B or 10BA during an assessment year.
Who can file 44AD?
A taxpayer who runs business other than leasing of goods carriages, plying, agency business, brokerage, etc., can file ITR under section 44AD. The taxpayer can be a resident, including individuals, Hindu Undivided Family, or a partnership firm.
What is 44AD of Income Tax Act?
Section 44AD is a presumptive taxation scheme that was introduced by Income Tax Law in order to ease the tax burden on small taxpayers or assessees. Individuals who come under the provisions of this scheme need not maintain or show books of account, nor are they required to get an audit performed on the same.
What is Section 44AD of Income Tax Act?
What is income under section 44AD?
In case of a person adopting the provisions of section 44ADA, income will be computed on a presumptive basis, i.e. @ 50\% of the total gross receipts of the profession. In other words, total gross receipts from profession should not exceed Rs 50 lakh for a financial year.
Which ITR to file under Section 44AD?
Prashant wants to know which ITR to file. Even though Prashant runs a business which is eligible under section 44AD, he shall have to file ITR-4. Return of income must include income from all sources and given Prashant’s first business, ITR-4 shall be applicable for filing his consolidated income details.
What is the meaning of ITR 4?
ITR-4; also known as SUGAM,is filed by professionals & businessmen who are filing their taxes in accordance with presumptive scheme of taxation. Every year new ITR forms are notified by the Income Tax Department with some changes.
Who selected form ITR 4 for Presumptive Income Scheme?
Form ITR 4 is selected by the taxpayers for presumptive income scheme u/s 44AD, 44ADA, 44AE. Still confused about section 44AD, 44ADA, 44AE?
What is form ITR-4 (Sugam)?
Income Tax Department has notified different ITR forms on the basis of the nature of income & class of people like ITR-1, ITR-2, ITR-3 etc. to file income tax returns. Form ITR-4 (SUGAM) is a simplified form used by the taxpayers who is opting for presumptive taxation scheme under section 44AD, section 44ADA and section 44AE. Who can file ITR-4?
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