New Threshold limit for 44ADA in Budget 2023. TAXCONCEPT

In Budget 2023, the Finance minister has introduced new threshold limits for 44ADA of the Income Tax act, 1961.

Section 44ADA is applicable to professionals like doctors, lawyers engineers etc.  Under this threshold limit has been increased from 50 lakhs to 75 lakhs per annum.

However, this new limit shall be applicable to professionals having more than 95% of the transactions i.e. receipts and payments in non-cash ie in online mode.

Persons opting under 44ADA are required to declare profits of an amount equal to 50% of turnover as profits and gains from profession.

This new threshold limit shall be applicable from 1st April 2024.

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