Clarification on Section 44ADA Presumptive Tax on Professionals

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  1. Gagan93

    Gagan93 New Member


    It seems itr4s doesn't include capital gains. Also if u fill Itr3 you need to submit balance sheet and p&l which is not required under section 44ADA.
    Please suggest,
    gaurav- likes this.
  2. gaurav-

    gaurav- New Member

    I am a full-time freelancer and also have gains from stocks. Can I file under 44ADA? I was told by someone that I cannot because of the capital gains.
  3. CA. Rohit Sharma

    CA. Rohit Sharma New Member


    The words used in 44ADA are "50% or such higher". Thats a big thing in favour of the department. Ideally and in my opinion, one must declare as much profits as justified by their investments. So, if i receive 40L, out of which 10L are in the bank, 5L invested in Mutual Funds, Bought a car of 7L & gave loan of 5L, then i must declare a profit of 27L as against 20L .

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