I am an individual professional offering consulting services in the area of Technical consulting. If my income exceeds 50 lakhs a year but less than 1 crore at what rate will I be taxed if I do not have any expenses declared? In such a case will I have to maintain books and be audited by an auditor? Under what section of IT act will I be placed -- Section 44AD?
Ans: As per Section 44AA, of income tax act 1961, you need to maintain books of accounts compulsorily. You cannot be covered under the presumptive taxation scheme as your income is above Rs 50 lakh.Since your gross receipts out of profession exceeds Rs 5o lakh, Tax audit needs to be done. As a consultant, your income is taxed under the head 'Profits and Business or Profession'.
You are allowed to claim expenses on actual basis which have been incurred by you in connection with your work.
You may opt for traditional tax slab or new tax regime (without deductions) based on what works better for you.