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30+ years of combined expertise in complex Indian taxation and compliance.
Doctors, Lawyers, Architects, Tech Consultants: Stop paying business tax rates on personal effort. With Section 44ADA, you can legally lock your effective tax rate around 10-15%.
Most generalist CAs treat you like a small business owner—forcing detailed bookkeeping and audits you may not need. Meanwhile, you leave significant deductions unclaimed.
Many professionals fear declaring flat 50% expenses without vouchers. But 44ADA is a "Presumptive" scheme—the law PRESUMES 50% expenses. You don't need proof if you follow the rules.
Reality Check:
A consultant earning ₹60L pays tax on only ₹30L (50% deemed profit). Effective rate: 15.6%. No audit required. No detailed books.
Freelancers receiving USD/EUR often miss critical documentation. Without FIRC (Foreign Inward Remittance Certificate), tax authorities may treat your export income as domestic—triggering GST liability.
Common Trigger:
₹40L received from US clients without LUT filing = ₹7.2L GST demand + interest + penalty.
Forming a Pvt Ltd "because it sounds professional" when Proprietorship would be more tax-efficient. Or staying Proprietor when LLP would provide protection and flexibility.
Cost of Wrong Choice:
A Pvt Ltd with ₹50L profit: 25% corp tax + dividend tax = ~36%. Same as Proprietor under 44ADA? Just 15.6%.
Maintaining books, monthly GST returns, TDS compliance, advance tax—when 44ADA could eliminate most of this. Most professionals are over-complying.
Time Saved:
Under 44ADA: ITR-4 (simple form) + quarterly GST. That's it. No audit. No detailed books.
Maximizing the 50% flat deduction for receipts up to ₹75L. Understanding when to opt in vs. opt out based on actual expense ratio.
Proprietorship vs LLP vs Pvt Ltd analysis. Avoiding the "Pvt Ltd Trap" of high compliance for simple consulting.
LUT filing for 0% GST exports. FIRC management. DTAA relief claiming via Form 67. Double taxation prevention.
Flexible advance tax modeling for irregular income. Avoiding 234C interest. March 15 single payment strategy.
1. 44ADA Election
Taxable income reduced from ₹55L to ₹27.5L (50% deemed profit). Tax saved: ₹8.6L
2. GST Registration + LUT
Filed LUT for export services. Zero GST liability. Claimed ₹80K input credits on laptop/software.
3. Form 67 Filing
US client withheld 30% on some payments. Claimed foreign tax credit: ₹1.2L recovered
4. Simplified Compliance
Stopped maintaining detailed books. Filed ITR-4. Single advance tax payment in March.
"I was paying a CA ₹50K annually to maintain books I didn't need. Sami showed me 44ADA eliminates all that. Plus they found ₹1.2L in foreign tax credit I didn't know existed. The savings in year one were 30x their fees."
— Tech Consultant (Bangalore, serving US clients)
Expert answers on 44ADA, entity structure, and international income
Section 44ADA is a presumptive taxation scheme for professionals with gross receipts up to ₹75 Lakhs (if 95%+ digital receipts) or ₹50 Lakhs otherwise.
Eligible professions include:
It depends on your stage and goals. Sami Tax models all three scenarios:
Proprietorship
Simplest. Income at personal slab rates (up to 31.2%). Best for income under ₹50L.
LLP
Limited liability. 30% flat rate. Can retain earnings. Best for liability protection.
Pvt Ltd
25% rate but dividend tax adds up. Best for raising investment or building sellable asset.
Sami Tax models all scenarios with your actual numbers and growth projections before recommending.
Foreign consulting income has three main considerations:
Sami Tax international service: LUT filing, FIRC management, and DTAA relief claiming.
Under 44ADA, 50% deemed expense covers everything. No separate business expense deductions.
However, you CAN still claim:
Many professionals combine 44ADA with salaried consulting—Sami Tax structures the split to optimize overall tax.
44ADA gives you a special concession:
✓ Under 44ADA
Pay entire advance tax by March 15 in one installment. Simple but needs cash discipline.
Regular (Books)
Quarterly: 15% June, 45% Sept, 75% Dec, 100% March. Missing = 234C interest.
Sami Tax provides: Quarterly advance tax estimates based on your income patterns + liquidity planning.
Once you cross ₹75L, 44ADA no longer applies. You must:
At this level, entity structure becomes critical. Many professionals transition to LLP or Pvt Ltd.
Sami Tax helps with: Transition planning, optimal entity structure, compliant books setup from day one.
Schedule a consultation. We'll analyze your current structure, identify 44ADA eligibility, and project your potential savings.