Presumptive taxation

[shruti mittal]

Can a professional having Gross receipts less than Rs 15 Lakhs show his income on presumptive basis?

AI Summary

Professionals with Gross Receipts Under Rs 15 Lakhs Excluded from Presumptive Taxation Under Section 44AD of Income Tax Act A query was raised regarding whether a professional with gross receipts under Rs 15 lakhs can opt for presumptive taxation. The response clarified that Section 44AD of the Income Tax Act, 1961, excludes certain professions, such as legal, medical, engineering, and others specified under Section 44AA, from presumptive taxation. These professions are required to maintain detailed accounts. The rationale behind excluding professionals from Section 44AD benefits is that they are presumed to have adequate education to maintain financial records, unlike small businessmen who benefit from simplified tax processes.