Archive · 6 Dec 2025
Standard Deduction Ineligible for Consultants
Alexander Sahayam earns ₹15 lakh annually as a web content provider and has additional income from fixed deposits, capital gains, and rental income.
He is taxed under Section 194J and considers presumptive taxation under Section 44ADA.
He asks if he can claim a standard deduction of ₹75,000.
The response clarifies that the standard deduction is only for salary income, not consultancy income.
Therefore, his total taxable income is ₹12.18 lakh after deductions, and he will have to pay taxes accordingly.
Alexander Sahayam earns ₹15 lakh annually as a web content provider with 10% TDS under Section 194J.
Additional income includes ₹2 lakh from fixed deposits, ₹1 lakh from debt mutual funds, and ₹2.4 lakh from rental income.
Under Section 44ADA, he declares 50% of his income for taxation, resulting in ₹7.5 lakh.
After 30% deduction on rent and adding all incomes, his total taxable income is ₹12.18 lakh.
Standard deduction of ₹75,000 is not available for consultancy income, so he must pay taxes on his total income.
- Who
- Alexander Sahayam, a web content provider
- What
- Inquiry about tax implications and standard deduction eligibility
- When
- Published on December 6, 2025
- Where
- India
- Why
- To understand tax obligations and deductions for consultancy income
- Annual Income
- ₹15 lakh as web content provider
- TDS Deduction
- 10% under Section 194J
- Fixed Deposit Interest
- ₹2 lakh
- Capital Gains
- ₹1 lakh from debt mutual funds
- Rental Income
- ₹2.4 lakh annually
- Presumptive Taxation
- 50% of income under Section 44ADA
- Total Taxable Income
- ₹12.18 lakh after deductions
- Standard Deduction Eligibility
- Not available for consultancy income