Income

Can professionals with part time affiliate income opt for Section 44AD and Section 44ADA?

Can professionals with part time affiliate income opt for Section 44AD and Section 44ADA?
  1. Can a person use 44AD and 44ADA simultaneously if he has income from both businesses as well as a profession?
  2. Can professionals opt for 44AD?
  3. Who Cannot opt for 44AD?
  4. Who can opt for presumptive taxation scheme?
  5. Who is covered under section 44ADA?
  6. Can I shift from 44ADA to 44AD?
  7. Can speculative income be shown under 44AD?
  8. Is 44AD mandatory or optional?
  9. Which income comes under 44AD?
  10. Who can file presumptive return?
  11. Which income is related to profession?
  12. What is difference between speculative and non speculative business income?
  13. Can a salaried person have business income?
  14. Which ITR is used for speculative income?

Can a person use 44AD and 44ADA simultaneously if he has income from both businesses as well as a profession?

As concluded above, a registered professional under Section 44AA, filing ITR under Section 44ADA is not eligible to avail benefits under Section 44AD.

Can professionals opt for 44AD?

A person who is engaged in any profession as prescribed under section 44AA(1) cannot adopt the presumptive taxation scheme of section 44AD. The presumptive taxation scheme of section 44AD can be opted by the eligible persons, if the total turnover or gross receipts from the business do not exceed Rs. 2,00,00,000.

Who Cannot opt for 44AD?

A person who is earning income in the nature of commission or brokerage cannot adopt the presumptive taxation scheme of section 44AD. Insurance agents earn income by way of commission and, hence, they cannot adopt the presumptive taxation scheme of section 44AD.

Who can opt for presumptive taxation scheme?

Any business which has a turnover of less than Rs 2 crore can opt to be taxed presumptively. They must declare profits of 8% for non-digital transactions or 6% for digital transactions, whichever one is applicable.

Who is covered under section 44ADA?

Section 44ADA offers a scheme of presumptive taxation of profits and gains arising from professions mentioned under Section 44AA(1) of the Income Tax Act, 1961. The benefit of section 44ADA can be taken only by those specified professionals whose annual gross receipts are under Rs 50 lakh.

Can I shift from 44ADA to 44AD?

Yes, you use both the section simultaneously. However, you satisfied all the condition mention u/s 44AD & 44ADA.

Can speculative income be shown under 44AD?

06 July 2012 It is no where mention in 44AD that it is not applicable on Speculative business . (iii) a person carrying on any agency business.] (V) whose total turnover or gross receipts in the previous year does not exceed an amount of 44a[45[sixty lakh rupees]].]

Is 44AD mandatory or optional?

Under Section 44AD of presumptive taxation , small taxpayers with less than 2 crore of turnover are not required to maintain books of accounts and their profits are presumed to be 8% of their turnover.

Which income comes under 44AD?

Tax paid by the assessee under Section 44AD is calculated at 8% of the individual's gross turnover for the financial year, provided that his or her gross turnover is below Rs 1 crore. This limit has been raised to Rs 2 crore as per the Budget 2020.

Who can file presumptive return?

Eligibility for the Presumptive Taxation Scheme

The taxpayer can be a resident, including individuals, Hindu Undivided Family, or a partnership firm. However, taxpayers whose gross receipt during the relevant financial year exceeds Rs 2 crore are not eligible to file the presumptive tax under section 44AD.

Which income is related to profession?

An income from profession means the income earned due to the skill you possess (intellectual skill or a manual skill). As per the Income Tax Act, income from such profession will be taxable under the head 'Profits and Gains of Business and Profession'.

What is difference between speculative and non speculative business income?

Trading income declared as business income can be classified into two categories: Speculative business income: Intraday equity trading income is considered as speculative. Non-speculative business income: By definition, income from trading F&O is considered as non-speculative business income.

Can a salaried person have business income?

Yes !! Any person can have both Salary as well as Business Income.

Which ITR is used for speculative income?

Which ITR is Used for Speculative Income? Generally ITR 3 is filed for reporting speculative business income or loss similar to that of normal business income.

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