Shashank took an early retirement from his full time job and is currently a recognized free-lance consultant. He believes that time is money and hence it must be well spent on productive activities. Tax time makes him very stressful as he feels sitting down to collate his bills for writing his books of accounts is like searching for a pin in a hay-stack ! Does he have an alternative to do his tax filing?
Bookkeeping is a mundane task and often considered as a post mortem survey of transactions in a business/profession ! Income Tax Law expects a person carrying on a business or profession to maintain his/her books of accounts if their annual income and turnover crosses specific limits (Income more than Rs. 2.5 Lacs and Turnover more than Rs. 10 Lacs). But the law also recognizes the difficulty a small business or profession may go through and hence it provides a solution for such assesses.
Presumptive Taxation – Opt in:
A resident individual or a firm who is a professional can opt for the “presumptive taxation” scheme u/s 44ADA and choose to declare 50% of his/her turnover as “professional income” in his/her income tax returns.
Practical Benefits of choosing the presumptive route:
1. No books of accounts need to be maintained – Saves time & money
2. A clear track of the turnover (billing to the customer) is the main data one requires to complete tax filing
3. ITR 4 can be filed – a simple return designed for small business & profession
Professional Charges for filing ITR 4 is lower compared to filing ITR 3 which requires preparation of P&L and Balance Sheet
44ADA is the ideal route for free lancers and consultants. But one should be aware that there are few clauses like the turnover limit, Block period for 44ADA etc which should be well understood before opting for the same.
Entrepreneurs – How can we help you?
“All our dreams can come true, if we have the courage to pursue them.”
Walt Disney
An Entrepreneur begins a journey with a lot of dream and aspiration. But beyond all those “think big” thoughts, the reality is that a business requires a lot of hard work and one may not notice the warnings signs early at every speed breaker he/she passes by!
A growing business needs a trusted advisor to ease the pressure by guiding it through complexities that come its way. We understand your needs and can help you with your (cumbersome but compulsory) compliance.
At Chockalingam Unnamalai & Associates, we have a separate vertical that caters to Business Set Up & related activities. We are here to make your life easier from day one !
Reach us for professional service on ROC, GST, Income Tax & TDS Compliances. Onboard us and experience certainty!
Contact:- +91 73050 56628 / unna@onesourcevault.com
ITR Filing – Why choose us?
Effective compliance is a key pillar for growing your finances and career/business. Tax compliance in particular could be cumbersome and at times very stressful. We help you to navigate through the maze of changes to tax laws with ease.
We understand and operate on the principle – “Time is money”. We have a reasonable turnaround time (TAT) which ensures timely tax compliance.
We understand the importance of data security and hence operate in a data-secure environment. Onboard us and experience certainty and value for money!
With a 15 year experience in the Industry, Chocksi decided to commence his practice after the “Entrepreneurial Bug” bit him ! He is the Founder Partner of Chockalingam Unnamalai & Associates, Chartered Accountants.
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