If you are a freelancer, consultant, or self-employed professional in India, then Section 44ADA might be your best tax buddy.
✅ 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟒𝟒𝐀𝐃𝐀?
A simplified tax scheme for professionals earning up to ₹50 lakh/year, allowing them to declare 50% of gross receipts as income—no books, no audit.
👩⚖️ 𝐖𝐡𝐨 𝐂𝐚𝐧 𝐔𝐬𝐞 𝐈𝐭?
Resident individuals or partnership firms (not LLPs) in professions like:
• Legal, Medical, Engineering.
• IT Consulting, Accountancy, Architecture.
• Film Artists, Interior Designers, etc.
📊 𝐇𝐨𝐰 𝐈𝐭 𝐖𝐨𝐫𝐤𝐬
• Let us understand this with an example.
• Gross receipts ₹40,00,000 –> Presumed income (50%): ₹20,00,000 –> Tax is calculated on ₹20L –> No need to show actual expenses or maintain detailed accounts
🚫 No Extra Deductions – All expenses (travel, rent, etc.) are presumed covered in the 50% deemed income.
🧾 𝐅𝐢𝐥𝐢𝐧𝐠 𝐈𝐧𝐟𝐨
Use ITR-4 (Sugam) for filing under Section 44ADA.
💡 𝐒𝐡𝐨𝐮𝐥𝐝 𝐘𝐨𝐮 𝐎𝐩𝐭 𝐈𝐧?
✅ 𝐘𝐞𝐬 – if you want simplicity and have expenses not exceeding 50% of total receipts.
❌ 𝐍𝐨 – if your expenses are high or you want actual deductions.
#DemystifyingITR #ITRFiling2025 #FinanceTips #TaxReady #SmartMoney #IncomeTaxIndia #TaxSimplified #FinancialYear2024_25
Read this blog on linkedin
https://www.linkedin.com/feed/update/urn:li:activity:7335530693214568451/
