Answer

ITR

TDS on professional receipts and gross receipts

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  1. Facts

    Gross receipts are before TDS. The TDS is a tax credit claimed in the return, appearing in Form 26AS and AIS against your PAN.

  2. Provisions and law

    • Sec 44ADA (now Sec 58)Presumptive professional income at 50% of gross receipts
    • Sec 194J (now Sec 393)TDS on professional or technical fees

  3. Analysis

    If a client paid ₹4,50,000 after deducting ₹50,000 TDS, your receipt is ₹5,00,000. Under 44ADA, income is ₹2,50,000 and the ₹50,000 TDS is credited against tax. If tax is lower than TDS, you get a refund. Match each TDS entry in 26AS with your invoices.

  4. Conclusion

    1. Add back TDS to the amounts received to get gross receipts
    2. Match 26AS TDS with invoices
    3. Declare income on gross receipts
    4. Claim TDS in the return

A Savvy can do this for you

Presumptive income tax return, ITR-4 (Sugam), Sec 58 (old 44AD, 44ADA, 44AE)

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