eFiling Income Tax for Doctors and benefits on IT Return Filing
Income from doctors can be from 2 modes namely:
1.Salary income from hospitals, clinic etc.
2.Professional services income.(Proprietorship, Partnership, and a company)
1. Salary income from hospitals, clinic etc.
a)For individuals who are employed as a employee and having a employer and employee relationship there is not need to maintain any books of accounts.
b)TDS will be deducted for the employees under section 92B under income from head salary.
c)Filing of income tax return under section 139(1) would suffice the compliance requirement for the individual as a employee
2.For doctors who render professional services as a consultant or maintain their own establishment.
a)Books of accounts are to be maintained as per the 44AA of the income tax act 1961 in the following cases
where the gross receipts from the specified profession exceed Rs. 1,50,000 in any of the 3 years immediately preceding previous years relevant to current previous year, or not likely to exceed Rs 1,50,000 in the current previous year.
Following books of accounts need to be maintained as per section 44AA
1)All bills in original for those exceeding the amount of Rs 50 per bill
2)All bills as a carbon copy if amount exceeding Rs25
Deductions available for doctors as expenditure
1)All direct expenditure viz, salaries paid to doctors.
a)Attending some conference..? you can claim that expenditure.
b)You use lot of consumables during your medical treatment, yes you can claim these expenditures.
2)General repairs and maintenance of the equipment.
3)Maintenance expenditure relating to house keeping as house keeping expenses even form a substantial part of the expenditure.
4)Indirect expenditure such as to administrative staff salaries, payment to parking and rent of the building if the building is taken on lease.
5)Practising from home? yes you can claim the rent, electricity and maintenance of the same to the extent used for your own practice.
Yes..! no need to maintain books of accounts, neither maintain a register of bills nor maintain details of the stock of your consumables. Here is how you can do this.
As per the new amendment in the finance act 2016 a new concept of presumptive income is applicable to the doctors in the following cases.
i)For the Doctors whose form of business if in the nature of sole proprietorship, Partnership, or HUF, if the total gross receipts in the previous year done not exceed Rs. 50,00,000, there is not requirement of filing tax audit report for the said business, provided the rate of income declared on such presumptive income is not less than 50% of the gross receipts
ii)No books of accounts are required to be maintained under section 44ADA
iii)income shall be declared @ of 50% on the total receipts/ turnover in the relavent previous year.
iv)However Advance tax has to be paid even for such professionals in one instalment which shall be 15th march of the relevant previous year.