Feeling confused right now
Got my ITR draft from my CA.My freelance income is shown under Other Sources instead of Section 44ADA presumptive tax.No Schedule BP or presumptive income mentioned
With New tax regime not sure if this impacts how 44ADA should be applied or if this means I m paying extra tax
I haven’t filed the return yet so thinking for asking for a revision or consulting another CA
Would love to know if it’s better to revise now or wait
Really appreciate any advice u can share
Just spoke to my CA and now I’m even more confused 😅
He said Section 44ADA is only for professionals like doctors and lawyers not freelancers.
But I’ve seen so many people say writers, designers, consultants also claim it..
I’m still figuring it out too will update here once I get clarity from another CA. Hoping someone with similar experience can also share their views
You should clarify your doubt with your CA or it's also a best option to getting an second opinion for another CA.
It also allows you to consider only 50% of your receipt to be considered as taxable income and 50% as a business expenses
My friend, you are most free to use the Presumptive Taxation rule (u/s 44ADA) and file your ITR (provided your earnings do not cross 50 Lakhs).
This will slash your taxable income to straight half (50%) and you pay tax on such reduced figure (if more than 7 Lakhs).
You can contact me for more discussion, I am Tax Consultant
Change your CA. You are being non compliant and would also end up paying more taxes by reporting it under IFOS instead of professional income. Freelancers are also a part of 44ada. DM me if you need help