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Tax Filing For Architects

Last Update Date : April 29, 2019
Estimated Read Time: 3 min

Tax filing for architects

One of the most fulfilling feelings is creating something with your hands. However, what is even more rewarding is creating homes and living spaces where people live and work. The act of building homes and spaces allows you to connect with the people, where you get to become a part of the space they will occupy on a daily basis. As rewarding as a career in architecture is, all professions require you to pay taxes on your income. Read this guide to know more about tax filing for architects.

Earnings For Architects

Architects have two choices for starting their career. He/she can join an architectural firm or become his/her own boss by providing consultancy to various, companies, firms, LLP’s, individuals, etc. He/she can either earn from Income from Salary or Income from Profession. If he/she works for a firm on a fulltime payroll then his/her income will be income from salary, and TDS will be automatically deducted, and tax savings deductions applicable under 80C to 80U can be availed. However, for those working for themselves, their income will be considered as Income from Profession and books of accounts are required to be maintained as per section 44AA.

Tax Rules Applicable for Professionals

For professionals, including architects, books of accounts should be maintained if the gross receipts exceed Rs 1,50,000 in any one of the three years immediately preceding the previous year or where the profession is newly set up in the previous year, if the gross receipts exceed Rs 1,50,000 for that previous year. Books of accounts should include the following details:

  • Original bills exceeding Rs 50
  • Carbon copy bills over Rs 25
  • Ledger, Journal and Cashbook

Section 44ADA

For professionals such as architects, they can avail of the benefits u/s 44ADA, which was introduced to lessen the burden of compliance and help small businesses. This section also helps small businesses and professionals under the Presumptive Taxation Scheme.

Expenses/Deductions Allowed for Architects

The following deductions are allowed for architects:

  • Any salary paid to other employed architects
  • Rent paid for the office
  • Fees for attending conference/seminars expenses
  • Telephone and internet charges
  • Depreciation on the asset used for profession
  • Stationery (paper, pencils etc.)
  • Maintenance expenses such as house-keeping
  • Any other expenses which is directly or indirectly connected with your profession
  • If working from home, then portions of rent, electricity etc. can be claimed as expenses.

Advance Tax

Advance tax is applicable to professionals, which is due quarterly on the estimated income amount for the year. If an architect is availing for the presumptive taxation scheme, then he/she must pay the advance tax in full by March 31st.

Tax Audit

An architect whose gross receipts exceeds Rs 50 lakh per annum, will be liable to a tax audit u/s 44AB, which must be conducted by a professional tax expert.

Filing Due Date

For architects who do not have to get their books audited, the return filing due date is July 31st. For those who are required to get their books of accounts audited, then the due date for filing tax returns is September 30th.

How H&R Block Can Help You?

Create more time in your life for creating beautiful spaces, by enlisting the aid of the tax experts to help you in filing your annual tax return. Pour your time and energy into your profession while your tax expert at H&R Block India takes care of your annual tax returns, ensuring to avail of the maximum tax saving options.

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CA Chetan Shinde
Chetan is the Lead Tax Advisor at H&R Block (India) with an experience of almost half a decade in audit and taxation. His professional areas of interest are GST advisory and statutory audit. Apart from taxation, he is passionate about social causes and works extensively towards rural school development and literacy.

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