Answer

1. F

   Facts

   No. Under Sec 44AD and 44ADA, the presumptive income is deemed to be after all expenses, and depreciation is treated as already allowed. You cannot deduct expenses separately.

2. P

   Provisions and law

   • Sec 44AD (now Sec 58)Presumptive business income at 6% of digital and 8% of other receipts for eligible businesses
   • Sec 44ADA (now Sec 58)Presumptive professional income at 50% of gross receipts
3. A

   Analysis

   If turnover is ₹70 lakh, all digital, income is ₹4,20,000 at 6%; rent of ₹3,00,000 and salaries of ₹6,00,000 are not deducted again. If your actual profit after expenses is lower than 6%, you can declare it, but then books and audit apply. For assets, the written down value is worked out as if depreciation was allowed each year.

4. C

   Conclusion

   1. 1Do not list expenses separately in ITR-4
   2. 2Compare actual profit to the presumptive rate
   3. 3Choose presumptive or books based on that
   4. 4Keep asset records for the written down value

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.