{"id":2649,"date":"2019-11-13T14:37:32","date_gmt":"2019-11-13T09:07:32","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=2649"},"modified":"2019-11-13T14:40:03","modified_gmt":"2019-11-13T09:10:03","slug":"section-44-ada","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/section-44-ada\/","title":{"rendered":"Section-44ADA, Income-Tax Act, 1961"},"content":{"rendered":"<h2><b>Section:- 44ADA<\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2645 aligncenter\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/11\/Section-44ADA-Income-tax-Act-1961.png\" alt=\"Section - 44ADA, Income-tax Act, 1961\" width=\"700\" height=\"400\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/11\/Section-44ADA-Income-tax-Act-1961.png 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/11\/Section-44ADA-Income-tax-Act-1961-300x171.png 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/11\/Section-44ADA-Income-tax-Act-1961-20x11.png 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<p><b>Numerous provision for computation of Profession Income Under Presumtion Scheme\u00a0 i.e, SEC 44ADA.<\/b><\/p>\n<ul>\n<li><b><span style=\"font-weight: 400;\">Under the section 44ADA ,Irrespective of\u00a0 anything contained in\u00a0<\/span><span style=\"font-weight: 400;\">sections 28<\/span><span style=\"font-weight: 400;\">\u00a0to\u00a0<\/span><span style=\"font-weight: 400;\">43C<\/span><span style=\"font-weight: 400;\">, If the assessee , being the Resident in India who is engaged in profession as notified u\/s 44AA of an assessee, being a resident in India, and whose total gross receipts do not exceed 50 lakh\u00a0 rupees in a previous year, then a sum equal to fifty percent of the total gross receipts of the assessee in the previous year of such profession or, as the case may be, or a Higher percentage of sum can be claimed by the assessee and that shall be deemed to be PROFIT AND GAIN OF THE PROCESSION particularly.<\/span><\/b><\/li>\n<li><b><span style=\"font-weight: 400;\">Deduction under <\/span><\/b>section 30\u00a0to\u00a038<b><span style=\"font-weight: 400;\"> shall be deemed to be allowed under the provisions of this section and shall be deemed to have been already given full effect to and other further deduction under the Income Tax shall be disallowed for the applicability of this sec 44ADA.<\/span><\/b><\/li>\n<li><b><span style=\"font-weight: 400;\">Under the section 44ADA\u00a0 Income Tax Act, 1961, <\/span><span style=\"font-weight: 400;\">the written down value of any asset used for the purposes of profession shall be deemed to have been calculated as if the assessee had claimed and actually will be allowed as the deduction for depreciation for the relevant assessment years as the maybe.<\/span><\/b><\/li>\n<li><b><span style=\"font-weight: 400;\">Sec 44ADA specifies that assessee is required to maintain Books Of Accounts under section 44AA, if the assessee\u00a0 claims that his profits from the profession are lower than the profits and gains and whose total income exceeds the maximum amount which is not chargeable to<a href=\"https:\/\/aktassociates.com\/blog\/income-tax-return-filing\/\"> income-tax<\/a>, and\u00a0 also the second condition prevail is that Assessee to is required to get them audited and accordingly furnish a report of such audit as required under <\/span><a href=\"https:\/\/aktassociates.com\/blog\/tax-audit-under-section-44ab\/\"><span style=\"font-weight: 400;\">section 44AB<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/b><\/li>\n<li><b><span style=\"font-weight: 400;\">For the purpose of this section, it has been assumed that section\u00a0 40, 40A and 43B have been considered and already allowed, so no further deduction while opting for this section is allowed. However, the written down value is calculated, where necessary, and accordingly, depreciation has been allowed.\u00a0<\/span><\/b><\/li>\n<li><b><span style=\"font-weight: 400;\">The assessee can declare a higher income in his return voluntarily under the section 44ADA\u00a0 <a href=\"https:\/\/aktassociates.com\/blog\/section-119-of-income-tax-act\/\">Income Tax Act<\/a>, 1961.<\/span><\/b><\/li>\n<li><b><span style=\"font-weight: 400;\">The assessee is resident and engaged in a profession referred to in section 44AA(1) (i.e., such as legal, medical, engineering or architectural profession or the profession of accountancy as the notified by the board.)<\/span><\/b><\/li>\n<\/ul>\n<p><b>Note<\/b><b>:-<\/b><\/p>\n<ol>\n<li><b> <\/b><span style=\"font-weight: 400;\">The assessee is resident and engaged in a profession referred to in section 44AA(1) (i.e., such as legal, medical, engineering or architectural profession or the profession of accountancy or consultancy regarding technical point or interior decoration or any other profession as the case notified by the Board CBDT).<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Gross receipts of the assessee from the profession do not exceed Rs. 50 lakh.<\/span><\/li>\n<\/ol>\n<p><a href=\"https:\/\/aktassociates.com\/business-compliance\/yearly-compliance\/it-return-filing\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2340 aligncenter\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Income-Tax-Return-filing.png\" alt=\"Income Tax Return filing\" width=\"700\" height=\"150\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Income-Tax-Return-filing.png 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Income-Tax-Return-filing-300x64.png 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/10\/Income-Tax-Return-filing-20x4.png 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><b>Note:- <\/b>Under section 44ADA, If the above two conditions are satisfied, then the income of the assessee shall be calculated on an estimated basis at a sum equal to 50% of the total gross receipts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section:- 44ADA Numerous provision for computation of Profession Income Under Presumtion Scheme\u00a0 i.e, SEC 44ADA. Under the section 44ADA ,Irrespective &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Section-44ADA, Income-Tax Act, 1961\" class=\"read-more button\" href=\"https:\/\/aktassociates.com\/blog\/section-44-ada\/#more-2649\">Read more<span class=\"screen-reader-text\">Section-44ADA, Income-Tax Act, 1961<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":2646,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Section-44ADA, Income-Tax Act, 1961 AKT Associates<\/title>\n<meta name=\"description\" content=\"Under the section 44ADA\u00a0 Income Tax Act, 1961, the written down value of any asset used for the purposes of profession shall be deemed to have been calculated as if the assessee had claimed and 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