• Implications of 194JA section and its conection with 44ADA section

I am a medical professional file using 44 ADA regularly.I used to receive most of my payments via 194J 

Last year on-wards i received payments with the 194Jb code...again meant for professional services-those were thus not a confusion. But apart from my work as a medical professional , I also provided technical services (not related to my profession). It was a small part time work that i undertook. But as a result, few of my payments came via the 194JA code.....this is specifically meant for technical services other than professional services. As I understand it, this is how eTDS utility mentions the said section: " 194J(a)- Fees for Technical Services (not being professional services)..."

If I were not a professional(not receiving any professional fees, not receiving payments via 194JB),there would have been no confusion and i would have used either 44AD (presumptive business tax) or filed via non presumptive basis for all the payments received via 194JA. But i am primarily a professional and I use 44ADA regularly (presumptive professional tax).

My questions are?

1)Can i file the amount i received for providing technical services under the head "Income from Other sources"?

2)Can i club both incomes and file under 44ADA if it would not exceed gross 50 Lakh (and supposing i am indeed a professional)?

3)If above two options are not possible. What is the correct way? (I have nothing to show as expense for this 194JA income which amounts to rs.1.25 lakhs)!!

I prefer option no:1 !!! Might i add, I don't have much documentation(like job letter, agreement etc) to show for most of my payments because of the freelancing nature of my job. The only document that I have is 26AS entries for all the payments and form no:16 for some of the payments. So please suggest options practical for me. As i said I prefer option no:1
Asked 3 years ago in Income Tax

 file professional fees as 44ADA AND file technical fee as other income

Anuj Agarwal
CA, Aligarh
64 Answers

Yes you can club both income and file return under 44ADA.

Ruchi Goel Anchal
CA, Gurgaon
525 Answers
16 Consultations

Claim 44AD for technical services and 44ADA for professional services. Income from other sources is a residual head when income does not fall in first four heads of income.

 

For detaile discussion, you may consult telephonically.

Vivek Kumar Arora
CA, Delhi
4951 Answers
1105 Consultations

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