u/GursimranS

Looking for advice from CAs, freelancers, and IT consultants.

I’m running an IT consulting business as a sole proprietor and evaluating two options:

1. Presumptive taxation under Section 44ADA
2. Maintaining regular books of account (P&L + Balance Sheet)

My previous year’s sale was 18L. This years projected sale is projected 78L (I can manage to keep it 75L if 44ADA) . I have two enterprise projects with proper monthly invoices for consultancy projects.

My CA recommends the second approach. His reasoning is that if the business is expected to grow, it’s better to maintain proper books from the start and claim genuine business expenses (software, depreciation, office expenses, contractor payments, etc.) with appropriate documentation rather than relying on presumptive taxation.

A few questions for those with practical experience:

What are the real-world pros and cons of 44ADA vs maintaining books?

What are the most common legitimate expense heads for an IT consulting business?

Also, my wife has an MBA and an HR background and is currently on a career break. She already helps me with administrative and HR-related work for the business. If I formalize her role with a proper agreement, defined responsibilities, bank payments, and all required tax compliance, is that generally considered an acceptable business practice? Has anyone here done something similar?

Looking for compliant, practical insights and experiences.

Thanks!

Hi, I am getting 56K digital edition with two controllers locally. As per the shopkeeper, sooner there will be new stock available at 56K with one controller as MRP is supposed to increase.

Irrespective of his price increase speculation do you think 56k with two controllers is a good deal?