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.

AI Summary

Opting Out of Section 44ADA Not Allowed; Professionals Must Adhere to Presumptive Taxation for Earnings Below 50 Lakhs A professional earning below 50 lakhs inquires if they can opt out of filing under Section 44ADA, which allows for 50% of income to be considered taxable, and instead file under normal business tax rules, declaring 20% of net income without requiring an audit under Section 44AB. The response provided indicates that this is not permissible.