44ADA APLICABILITY

[Abuthahir Aboobakar]

Mr ABC is Received Technical Fees for Providing Technical Services to Company PQR. The said Company is deducted TDS as per Section 194J @ 2% as a technical services then Mr ABC Can file his Income tax return under section 44ADA. (50% Profit)

or This Sec. 44ADA only available for Professional Fees only. i.e TDS Deducted by 10%

[subhash sb]

Sec 44ADA is applicable to the professions mentioned in 44AA (1).

Sec 44AA (1) lists the following professions

Every person carrying on

legal,

medical,

engineering or architectural profession

or the profession of accountancy or

technical consultancy or

interior decoration or

any other profession as is notified by the Board

As per your query the technical fees is from providing Technical Service. Hence he can claim 44ADA. Deduction of tds is not the criteria for applicability of 44ADA. However ensure the service provided comes under Tehnical Service.

AI Summary

Presumptive taxation for specified professionals under Section 44ADA allows technical consultants to opt for the presumptive scheme. Section 44ADA's presumptive taxation regime applies to persons carrying on specified professions including technical consultancy; technical fees for services that qualify as technical consultancy may be declared under the presumptive scheme. Deduction of tax at source from receipts does not determine eligibility for the presumptive regime; TDS does not preclude opting for presumptive computation so long as the service provided falls within the professions covered by the statute.