Archive · 3 Sep 2025

Taxpayers Face Scrutiny Over TDS Mismatch with Presumptive Taxation

Taxpayers Face Scrutiny Over TDS Mismatch with Presumptive Taxation

Some taxpayers are getting a closer look from the tax department.

This is because the tax deducted from their payments (Section 194J) doesn't always match the tax scheme they're using (Section 44AD or 44ADA).

Section 44AD is for small businesses, while 44ADA is for specific professionals like doctors.

The tax department wants to make sure people are using the right scheme.

If your business is eligible for 44AD, you can still use it even if taxes were taken out under Section 194J.

You just need to explain your business, provide proof, and reconcile records.

Tax experts say it's a hassle, but not a cause for panic if you can show you're following the rules.

Sources