Answer

1. F

   Facts

   No. Under Sec 44ADA all expenses, including depreciation, are treated as already allowed within the 50% deemed expense. The asset's written down value is treated as reduced by that deemed depreciation.

2. P

   Provisions and law

   • Sec 44ADA, Income-tax Act 1961 (now Sec 58, Income-tax Act 2025)Resident professionals with receipts up to ₹50 lakh (₹75 lakh if cash receipts are within 5%) can declare 50% of receipts as income
   • Sec 37, Income-tax Act 1961 (now Sec 34, Income-tax Act 2025)Business expenses wholly and exclusively for the business are deductible
3. A

   Analysis

   Example: receipts ₹20 lakh and a ₹2 lakh laptop; income stays at ₹10 lakh. If you later move to books, the asset's value is taken as if depreciation had been claimed in the presumptive years. If your actual costs are very high in a year, compare with books and an audit.

4. C

   Conclusion

   1. 1Keep bills for assets
   2. 2Do not claim extra deduction under Sec 44ADA
   3. 3Track asset values for any future switch to books
   4. 4Compare with actual profit if costs are high

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