44ADA applicability

[JIGAR SHAH]

If an assessee, being an engineer, has earned professional income u/s 194J from a single party and his total expenses towards earning are almost negligible, wants to take benefit of Section 44ADA i.e. showing only 50% of income. Will he be allowed to take the benefit of Section 44ADA? If yes, please explain.

[RAHUL GAIKWAD]

WHAT EXPLANATION DO U WANT.? BECAUSE SEC 44ADA CLEARLY TELLS US THAT NO NEED TO MAINTAIN BOOKS JUST YOU WANT DO DECLARE INCOME ABOVE 50% OF TURNOVER.

[JIGAR SHAH]

Dear Mr Rahul,

Thank you for the response towards the query.

AI Summary

Presumptive taxation lets professionals declare a fixed portion of receipts and dispense with maintaining books. Section 44ADA permits a professional to declare a prescribed portion of gross professional receipts as income and, when elected, eliminates the requirement to maintain detailed books of account, allowing the engineer to declare effectively half his receipts as income under the presumptive scheme.