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|
|Computer training and educational institutes||14009|
|Other computer related services||14010|
|Health Care Services|
|Independent blood banks||18006|
|Independent ambulance services||18008|
|Medical supplier, agency and store||18009|