How tax on professional income in India be computed if the gross receipts exceed 50 lakhs?

Dear Srinivasan Subramanian,

Thanks for asking the question.

Applicable Income Tax provisions and Procedures for Tax computations if gross receipts exceed Rs.50/- lakhs are as follows :

1. If the gross receipts exceed Rs.50/- lakhs then, we will lose the presumptive taxation benefit under section 44AD of the Income Tax Act.
2. Further such assessee requires to maintain the books of accounts under section 44AA ( subject to conditions )
1. if fails to maintain the books of accounts penalty of up to Rs.25000/-may attracted under section 271 A.
3. Further such assessee requires to get the books of accounts audit under section 44AB ( subject to conditions ) and file the return before 30th September of the assessment year.
1. if fails to audit the books of accounts then he is liable for Penalty u/s 271 B
1. .5% of T/O or Gross Receipts
2. Rs.150000/-, whichever is lower.
4. The applicable Tax slab rates for resident individuals to compute the tax:
1. up to 250000 net total income - NIL
2. > 250000 up to 500000 - 5%
3. > 500000 up to 1000000 - 20%
4. > 1000000 - 30%
5. Surcharge to be calculated
1. @ 10% of tax if NTI > Rs.50 lakhs but up to 1 Crore
2. 15% of tax if NTI > Rs. 1 Crore.
6. Further, if the Total Income exceeds Rs.20 Lakhs, then the provision relating to Alternative Minimum Tax shall apply under section 115JC.
7. Interest for the delay in Return filing, Interest for non-payment/short payment of Tax advance tax, and Interest for deferment of advance tax under the sections 234A, 234B, and 234C shall be considered if violated the same.