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Ramesh Sharma
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  1. CA Manish Kumar Gupta Enlightened

    Yes, a taxpayer opting for the presumptive taxation scheme under Section 44ADA is required to pay advance tax. However, the payment schedule is different from regular taxpayers. Advance Tax Rule for Section 44ADA (Special Provision - Section 211(1)(b)) Entire advance tax (100%) must be paid in a sinRead more

    Yes, a taxpayer opting for the presumptive taxation scheme under Section 44ADA is required to pay advance tax. However, the payment schedule is different from regular taxpayers.

    Advance Tax Rule for Section 44ADA (Special Provision – Section 211(1)(b))

    • Entire advance tax (100%) must be paid in a single installment on or before March 15 of the financial year.

    • If advance tax is not paid by March 15, interest under Sections 234B & 234C will be levied.

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Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    No, you cannot claim additional deductions for business expenses like rent, salary, office expenses, etc., when opting for the presumptive taxation scheme under Section 44ADA. ✅ As per Section 44ADA(2), the 50% of gross receipts deemed as income already accounts for all expenses related to the profeRead more

    No, you cannot claim additional deductions for business expenses like rent, salary, office expenses, etc., when opting for the presumptive taxation scheme under Section 44ADA.

    ✅ As per Section 44ADA(2), the 50% of gross receipts deemed as income already accounts for all expenses related to the profession.

    🚫 Depreciation under Section 32 is NOT allowed separately.
    ✅ However, the written-down value (WDV) of assets will be considered after reducing deemed depreciation.

    What Deductions Are Still Allowed?

    ✅ Deductions under Chapter VI-A (like 80C, 80D, 80G, etc.) CAN be claimed.

    ✅ Some common deductions that can be claimed separately:

    • Section 80C: Investments in PPF, ELSS, Life Insurance Premium, EPF, etc. (Max ₹1.5 lakh)

    • Section 80D: Medical insurance premium paid for self & family (up to ₹25,000/₹50,000 for senior citizens)

    • Section 80E: Interest on education loan

    • Section 80G: Donations to charitable institutions

    • Section 80TTA: Interest on savings bank account (up to ₹10,000)

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Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Formula for Taxable Income: Taxable Income=50%×Gross Receipts ✅ No deductions for expenses like rent, salaries, depreciation, etc.✅ Deductions under Chapter VI-A (like 80C, 80D, 80G) are allowed. Additional Considerations ✅ No Need to Maintain Books of Account (if 50% or more is declared).✅ AdvanceRead more

    Formula for Taxable Income:

    Taxable Income=50%×Gross Receipts

    ✅ No deductions for expenses like rent, salaries, depreciation, etc.
    ✅ Deductions under Chapter VI-A (like 80C, 80D, 80G) are allowed.

    Additional Considerations

    ✅ No Need to Maintain Books of Account (if 50% or more is declared).
    ✅ Advance Tax to be Paid in One Installment by March 15.
    ✅ ITR-4 (Sugam) Must Be Filed.

    🚫 If declaring income below 50%, books of account must be maintained & audit may be required.

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