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.
See less
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:
-
-
-
-
-
See lessSection 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)