a) Presumptive Taxation Scheme (Section 44ADA)

• This scheme is applicable to professionals whose gross receipts do not exceed ₹50 lakh per annum.
• Under this scheme, 50% of the total receipts are considered as taxable income, and the remaining 50% is assumed as expenses.
• Professionals opting for this scheme are not required to maintain books of accounts or get their accounts audited.
• The tax is calculated on the deemed profit, and standard deductions or expenses cannot be separately claimed.

b) Regular Taxation (Normal Income Tax Provisions)

Professionals who do not opt for the presumptive taxation scheme or whose turnover exceeds ₹50 lakh must follow the regular method:

• They must maintain proper books of accounts as per Section 44AA.
• Deduction of actual expenses such as rent, salaries, depreciation, office expenses, etc., is allowed.
• If gross receipts exceed ₹50 lakh, tax audit under Section 44AB is mandatory.
• The net taxable income is determined after deducting all eligible business expenses from the total receipts.

Depending on the nature of income, professionals must file the following ITR forms:

• ITR-3: If the professional maintains books of accounts and follows the normal tax regime.
• ITR-4: If the professional opts for the presumptive taxation scheme under Section 44ADA.

Professionals can claim various deductions under the Income Tax Act, including:

• Section 80C – Investments in LIC, PPF, NSC, ELSS, etc.
• Section 80D – Medical insurance premium.
• Section 80E – Interest on education loans.
• Section 80G – Donations to eligible charities.

• If total tax liability exceeds ₹10,000 in a financial year, professionals must pay Advance Tax in installments.
• If professionals receive payments with Tax Deducted at Source (TDS) under Section 194J, they can claim credit for the same while filing the ITR.

• 31st July – For professionals not requiring audit.
• 31st October – For professionals subject to tax audit.