Section 44ADA - Presumptive Tax Scheme for Employees

The proposed tax plan is introduced under section 44ADA from FY FY 2016-17. Section 44ADA provides an easy tax method for junior professionals. Section 44ADA provides for the payment of prepaid tax benefits and benefits from activities specified under Section 44AA (1) of the Income Tax Act, 1961. Section 44ADA benefit may only be taken by those professionals who have specified their annual receipts of less than Rs 50 lakh.

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Contents

  1. Recent Updates

1. Recent Updates

2021 Union Budget Result: The business tax assessment limit is extended from Rs. 5 crores to Rs. 10 crore w.e.f. A.Y. 2021-22 where digital activity is not less than 95 percent of total jobs.

Frequently Asked Questions

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Impact of section 44ADA selection

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All deductions for business expenses are considered allowable. If the profit is taxable on 50% of the total receipts, the balance of 50% is deemed to be allowed for all business expenses of the inspector. Business expenses may include utility costs, service costs incurred by another professional, daily expenses, books, stationery, phone bills, depreciation of goods (laptop, car, printer etc.) and any other expenses incurred to continue work. The written value (WDV) for goods for tax purposes will be calculated as a decrease allowed each year. The WDV will be the value of the property for tax purposes in the event that the property is sold later by the inspector.


CEO Krishna Gopal

Krishna Gopal Varshney is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Krishna Gopal Varshney
Co-founder & CEO