With a view to extend the presumptive taxation benefit to specified professionals, the presumptive taxation scheme under section 44ADA of the Income Tax Act, 1961 was introduced with effect from Financial Year 2016-2017.
An individual or a partnership firm (not Limited Liability Partnership) whose total gross receipts for the year don’t exceed INR 50 Lakhs are eligible to opt for the presumptive taxation scheme covered u/s 44ADA of the Income Tax Act.
Notably, presumptive taxation scheme u/s 44ADS is applicable only to the specified professionals which are listed below –
1. Legal profession;
2. Medical profession;
3. Engineering or architectural profession;
4. Accountancy profession;
5. Technical consultancy profession;
6. Interior decoration profession;
7. Profession of company secretary;
8. Profession of Information Technology;
9. Film artists (including producer, actor, editor, music director, director, dance director, art director, singer, cameraman, singer, lyricist, screenplay or dialogue writer, story writer and costume designers);
10. Authorized representative;
11. Any other notified professional.
Accordingly, all the professionals, other than those listed above, are the ones who cannot opt for a presumptive taxation scheme u/s. 44ADA.
For ready reference, the following table summarizes the illustrative list of professions, along with the relevant ITR business code, who cannot opt for presumptive taxation scheme u/s 44ADA –
| List of professions who cannot opt u/s 44ADA | ITR business code |
| Computer and related services | |
| Cyber café | 14007 |
| Computer training and educational institutes | 14009 |
| Other computer related services | 14010 |
| Health Care Services | |
| Independent blood banks | 18006 |
| Medical transcription | 18007 |
| Independent ambulance services | 18008 |
| Medical supplier, agency and store | 18009 |
Author Bio
what is the code of income under music compose.
Can a listed company having turnover less than 2 cr opt for 44AD?
Hi there.
I am having a business of photography-videography with 12-14 staff members.
We do photo/videography for different kind of occasions such as marriages, baby shower, Corporate shoots, Ad makings.
Should I file my return US 44AD or ADA ?
PLEASE GUIDE
OUR COMPANY IS MANUFACTURING WITH R& D RECOGNISATION.
AND R&D MEPLOYEE IS RETIRED. SO PLEASE GUIDE RETIRED EMPLOYEE’S GRATUITY WILL BE PAYABLE FROM R&D ACCOUNT AND THIS EXPENSES IS BOOKED U/S. 35(2AB)
Thank you sir for this article. Please tell also that a Hindu Temple Priest and free lancer of all Purohit related works doing person can come under 44ADA or not.
Hi,
Section 44ADA covers only those profession which are listed in the article above and the rate of 50% will be applicable. However, cases which are not covered under this section can opt for Sec 44AD where all businesses other than those in 44ADA are covered.
Your current case will be covered under section 44AD and limit of 2 Crores and other conditions will apply.
THANKS A LOT FOR THE VALUABLE INFORMATION.