Question

Dr. Srivastava is a dentist. His accountant advised him to maintain his books of accounts according to the Accrual basis instead of presently followed Cash Basis of accounting. Do you agree with the advice of Accountant? Give reason​

Answer 1

Answer:

Section 44ADA is inserted with effect from financial year 2016-17 and deals Special provision for computing profits and gains of profession on presumptive basis for Certain professionals referred to in section 44AA(1) of the Income Tax Act whose total gross receipts from profession does not exceed Rs. 50 lakhs in a financial year.