How 'presumptive taxation' can help bring down tax payable by a professional1 min read 24 Oct 2020, 09:13 AM IST
Professionals who can avail the presumptive taxation include legal professionals, medical, Engineers or architectures, accountants, technical consultants, interior decorators or, any other professionals as notified by CBDT.
Eligible professionals , freelancers and consultants can pay tax on half of their annual gross income. This can be done by opting for presumptive taxation scheme under section 44ADA of the Income Tax Act. Presumptive Taxation can help save taxes to a great extent. Presumptive Scheme under section 44ADA is applicable only for resident assessee whose total gross receipts of profession do not exceed fifty lakh rupees. However such person can declare income higher than 50%.
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