Section 44ADA for Doctors - Disclose Income @ 50%

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  1. sir i am doctor running a nursing home and opt section 44ADA for assessment year 2017-18 total recipt is ra 30lacs and expenses are of rs 10 lacs how i compute incometax on what amount should i pay incometax
  2. Piyush Chawla

    Piyush Chawla Active Member

    Under Section 44ADA, the Income would be presumed to be 50% of Total Receipts.

    Therefore the taxable income would 50% of 30 Lakhs = 15 Lakhs
  3. Who can clam this 44ADA section.
  4. MY daughter is dotor working with hospital in dehli recieveing RS 38 lacs /year in section 194J. by appling SECTION 44ADA profit @50% after computationand giving incometax on Rs 19 lacs b she can keep bank balance Rs about Rs 14lacs as saving or not in assessment year2017-18
  5. Piyush Chawla

    Piyush Chawla Active Member

    @nikhil p surve - Section 44ADA is for professionals such as legal, medical, architectural profession or profession of accountancy or technical consultancy or interior decoration.
  6. Piyush Chawla

    Piyush Chawla Active Member

  7. doctor can avail section 44ADA and give incometax on @50% of total recipt without expense 50% of total recipt is it right ?
  8. ZED

    ZED Well-Known Member

    Its 50% of the receipts without allowing expense. Kindly refer to the provision for more details.

    44ADA.(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 section 44AA 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.’.
  9. Sanjeev chi

    Sanjeev chi New Member

    If a professional is part of two partnership firms and both are doing a turnover of 45L each then will that professional will be able to claim 44ADA In both?
  10. Raja009

    Raja009 New Member

    Will Naturopathy and Physiotheraphy comes under Medical Professional?

    Those who can avail this presumptive tax facility in the stream of Medicine ?
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