Reiumbursement of Expenses by Client during the course of work

[Shan S]

Client reiumburses expenses made for internet, software. Should that be included in gross income for 44ADA?

 

[Sadanand Bulbule]

Yes. All receipts from clients including expense reimbursements are part of aggregate gross receipts for the purpose of Section 44ADA of the Income Tax Act, 1961. And the upper limit of such aggregate gross receipts has been increased to Rs. 75,00, 000/-  wef 01/04/2024.

AI Summary

Expense reimbursements included in aggregate gross receipts under the presumptive tax regime, affecting professionals' eligibility.
Expense reimbursements from clients for internet, software and similar items are included in aggregate gross receipts for the presumptive taxation regime for professionals, thereby affecting the gross receipts count used to determine eligibility; an administrative increase in the scheme's upper receipts limit is noted.