Presumptive Taxation Scheme
Yes, architects are indeed eligible to benefit from the Presumptive Taxation Scheme under Section 44ADA of the Income Tax Act in India.
This scheme is primarily designed to simplify the taxation process for professionals whose income is generated through various services, including architectural services.
Under this scheme, architects can declare a certain percentage of their gross receipts or turnover as their income, and they are not requir to maintain detailed books of accounts.
The declared income presumed to be their total income for taxation purposes. As of my last update in September 2021, the presumptive income rate for architects was 50% of their gross receipts.
This scheme offers several advantages to architects. It reduces the burden of maintaining extensive financial records and relieves them from the need to undergo a thorough audit process.
However, it’s important to note that if architects choose to avail of this scheme, they can not claim any further deductions on their income.
Architects who choose not to opt for the Presumptive Taxation Scheme can continue with the regular taxation process, where they need to maintain proper books of accounts and get their accounts audit if their turnover crosses the prescribed limit.
In summary, architects are eligible for the Presumptive Taxation Scheme under Section 44ADA, which allows them to declare a predetermined percentage of their gross receipts as income and simplifies the taxation process.
To visit: https://www.mca.gov.in/
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