Section
44ADA (Professional Deemed Profit @ 50 percent)
After section 44AD of the Income-tax Act, the
following section shall be inserted with effect from the
1st day of April, 2017, namely:—
'44ADA. Special
provision for computing profits and gains of profession on presumptive basis.—
(1) Notwithstanding anything contained in sections 28 to 43C, in the case of an
assessee, being a resident in India,
who is engaged in a profession
referred to in sub-section (1) of section44AA and whose total gross receipts do not exceed fifty
lakh rupees in a previous year, a sum equal to fifty per cent of the total gross receipts of the assessee in the
previous year on account of such profession or, as the case may be, a sum higher than the aforesaid sum claimed
to have been earned by the assessee, shall be deemed to be the profits and
gains of such profession chargeable to tax under the head "Profits and
gains of business or profession".
(2) Any deduction allowable under the provisions of sections
30 to 38 shall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further
deduction under those sections
shall be allowed.
(3) 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 had been actually allowed the deduction in
respect of the depreciation for each of the relevant assessment years.
(4) Notwithstanding anything contained in
the foregoing provisions of this section,
an assessee who claims that his profits
and gains from the profession are lower than the profits and gains specified in
sub-section (1) and whose total
income exceeds the maximum amount which is not chargeable to income-tax,
shall be required to keep and maintain such books of account and other
documents as required under sub-section (1)
of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.'.
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