(1) Notwithstanding anything contained in sections 28 to 43C, in the case of an Assesse, 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 rs 50 lakh rupees in a previous year, a sum equal to 50% of the total gross receipts of the assesse 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 assesse, 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 assesse 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 Assesse 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.

Why this section is proposed?

• To bring parity between small businessmen  and small professionals.

• Businessmen covered u/s 44ADA can pay the whole of advance tax by March 15.

• There is no provision in section 44ADA permitting a professional firm to deduct interest / remuneration paid to partners from the presumptive income offered.