Presumtive Tax - Benefit under 44ADA

[Guest]

Sir/Madame,

Is a pensioner engaged by Government for consultancy show his income as 50% of the total received and claim TDS as deducted by the employer? That is, a person earning ₹ 4 lakh as consultancy fee (besides the pension) claim TDS as deducted by the employer. If not, what percentage is deductible towards telephone bills and applicable items?

Will you please clarify.

V. Nagarajan

Delhi

[DR.MARIAPPAN GOVINDARAJAN]

Your query is not clear.

[Nandan Khambete]

Hii,

You need to first ensure that your profession is covered under Section 44AA(1) before claiming benefit u/s 44ADA.

If you are eligible to claim u/s 44ADA, you can declare Net profit at 50% of Receipts. However, TDS deducted by client is not a expense and hence cannot be claimed.All exepnses like telephone ,etc are assumed to be claimed once your opt for 44ADA benefit.

You can claim set off of TDS Credits against tax payable on other taxable income

AI Summary

Pensioner Seeks Clarity on Declaring Consultancy Income Under Section 44ADA and TDS Deductions A pensioner engaged by the government for consultancy work inquired about declaring income under Section 44ADA, specifically if they could claim 50% of their consultancy fee as income and the TDS deducted by the employer. Replies indicated that the individual must first verify if their profession is covered under Section 44AA(1) to claim benefits under Section 44ADA. If eligible, they can declare 50% of receipts as net profit, but TDS deducted by the client is not considered an expense. Expenses like telephone bills are assumed to be covered under the 44ADA benefit, and TDS credits can offset other taxable income.