44ADA INCOME TAX ON PROFESSIONALS

[puneet virmani]

IF A PROFESSIONAL BELOW 50 LACS DON'T WANT TO FILE UNDER 44ADA AND TAKE 50% AS TAXABLE INCOME , CAN HE / SHE FILE UNDER NORMAL BUSINESS @SAY 20% NET INCOME OF RECEIPTS (PROFIT APPROX) - ON ACTUALS AS PER INCOME AND EXPENDITURE ACCOUNT WITHOUT GETTING AUDIT UNDER 44AB.

[DR.MARIAPPAN GOVINDARAJAN]

In my view no.

AI Summary

Presumptive taxation limits professionals from opting out to report actual profits and avoid audit under normal rules. Whether a professional with receipts below the prescribed threshold may decline the presumptive taxation scheme and compute taxable income on actual profits to avoid a tax audit: the advisor's concise opinion is that this is not permissible.