Tax Planning
- Tax planning for
Salaried personhas been already discussed - Taxable Income = Salary - Exemption - Deduction
- read here
Below will check tax planning for Professions and Business
Which Professions Are Eligible Under Section 44ADA?
Besides generating annual earnings of less than Rs.50 lakh, individuals who practice these specific professions are deemed eligible under this Section of ITA.
- Accountants
- Medical services
- Legal services
- Technical consultants
- Engineers
- Architecture
- Interior Decorators
- Film artists
- Company secretaries
- Other professions mentioned by the Central Board of Direct Taxes
Notably, this taxation regime of presumptive income under section 44ADA applies to residents who are – HUF, individuals, Limited Liability Partnership Firms, Partnerships other than LLP.
Section 44AD – Presumptive Scheme
Features of presumptive scheme –
Your turnover must be less than Rs 2 crores.
Your minimum net income should be 8% of your turnover the minimum net income should be considered 6% in case of digital receipts
You don’t have to maintain accounting records.
Assesses opting for presumptive taxation has to pay 100% advance tax by 15th March
of that particular financial year with Prior to FY 2016-17 you don’t have to pay advance tax.
You don’t have to get your accounting records audited.
You can file your tax return in ITR-4 in a much shorter and simpler form than ITR-3.