Advance Tax

1.Since your professional income is more than 50 lacs you will not be covered under 44ADA.

2. You will have to maintain the books and get the audit done. Advance tax can be calculated after preparing an estimated P&L account.

1. Turnover limit to avail 44ADA is Rs. 50 lacs. In your case, turnover is more than Rs.50 lacs therefore you can not avail benefit of presumtive taxation scheme u/s 44ADA. You are liable to maintain proper books of accounts and get them audited.

2. You are liable to pay advance tax in 4 installments i.e. 15th June/15th Sep./15th Dec/15th March. As your total income is more than Rs. 1 cr, surcharge of 15% would be applicable. Advance tax calculation needs proper preparation of computation for entire financial year considering all sources of income, deductions and expenses.

3. Yes

4. Yes

5. As total income is more than Rs. 50 lacs, schedule AL would be applicable.

6. If there is any foreign assets, schedule FA is applicable.

7. GST is also applicable as turnover is more than Rs. 20 lacs

8. Turnover in GST and Income tax should be reconciled.

9. You are also liable to decut TDS (if appicable)

10. Maintain proper documentation 

For detailed discussion, you may opt for phone consultation.

If you are a professional covered under 44AA then you will be covered under 44ADA however since your professional receipt from freelancing exceeds Rs. 50 lakh you will have to get your books of accounts audited by a chartered Accountant.

That depends on what will be your income and how much expense do you have or this entire receipts is your income.

Yes you have to maintain books of accounts.

Yes tax audit applicable.

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Thank you.

Hello,

Sec. 44ADA Presumptive Taxation Scheme is available to only a specified list of professionals and also the gross receipts from the profession should be below Rs. 50 Lakhs limit. Therefore, in your case, you won't be eligible to claim Sec. 44ADA Presumptive Taxation Benefits.

Advance Tax can be estimated only after computing the taxable income & deductions and applicable taxes. The due advance tax would be payable in four installments throughout the financial year before specified dates.

Yes, maintenance of books would be required. Also, as per the details provided, the Tax audit would also be applicable.

First, you need to reassess whether you are eligible for Sec 44AD Presumptive Taxation or not. Also, the Tax audit can be avoided in case your aggregate cash receipts and cash payments throughout the year do not exceed 5% of the aggregate receipts and payments in the books.

I hope this answer satisfies your requirements. For a detailed resolution of your query, you can contact us directly at badlaniassociates at Gmail or take a phone consultation.

Regards,

CA Hunny Badlani

Badlani & Associates

1. No, you are not eligible for 44ADA for your freelancing job because your gross receipts are more than Rs. 50 Lakhs. 

2. Your advance tax will depend upon the total estimated income for the year. 

3. Yes, you have to maintain books of accounts because tax audit will be applicable in your case. 

a) No you can not come under 44ADA . since threshold is exceeded, however if freelancer income is not professional income you will be under 44AD which is even better in terms of taxation

b) Depends upon first question we can decide your effective presumptive tax rate and advance tax

c) No need to maintain books, however you need to take GST Registration

d) if its professional income than tax audit will be applicable

1) You will not be covered u/s 44ADA but as your professional income is more than Rs 50 Lakhs.

2) Tax liability on your professional income of Rs 78 L depends upon the expenses you can claim. On the net profit,  your tax liability works out to around 35% , including cess. You need to pay advance tax accordingly in instalments.

3) Yes you need to maintain books of accounts for your professional income

4) Yes Tax audit is applicable to you as your professional income is more than 50 Lakhs.

You may consider having professional income in the name of a firm or LLP with your wife as a partner, if she is otherwise qualified and does not come under the ambit of clubbing. In that case the income gets distributed to the partners in the form of remuneration and profits. 

I suggest you take a professional help for your financial planning that covers tax planning. 

Hi

1. No
2. Proper calculations need to be done for the same. Advance tax to be paid in 4 installments.
3. Yes
4. Yes

Dear Sir,

Hope you are doing well !!

1.No.

The benefit of section 44ADA can be taken only by those specified professionals whose annual gross receipts are under Rs 50 lakh.

2. Please share the complete details for proper calculation.

3. Yes.

4. Yes.