The ITAT has ruled that a Chartered Accountant can claim presumptive taxation under Section 44ADA for remuneration received from a partnership in a professional firm.
CA Partner Can Claim Presumptive Taxation u/s 44ADA on Remuneration
In a landmark judgment, the Income Tax Appellate Tribunal (ITAT) has determined that a Chartered Accountant serving as a partner in a professional firm is entitled to presumptive taxation benefits under Section 44ADA of the Income Tax Act for any remuneration earned from the firm.
The tribunal held that the nature of the remuneration is consistent with the scope of services rendered by the professional, allowing the applicability of presumptive taxation. It was also noted that the provisions under Section 44ADA are intended to benefit professionals by easing the tax compliance burden.
This decision provides clarity for chartered accountants and other professionals working in partnership structures, affirming their eligibility for presumptive taxation. It reflects a positive shift towards recognizing the unique working models within professional services.
Practitioners should advise clients accordingly about the implications of this ruling, as it opens new opportunities for professionals to optimize their tax liabilities while ensuring compliance with the law.
Citations
- ITAT Order (2026) ITAT 1449162
