For Bounty Hunters and Signature Campaigner: If you have earned any income from such sources and redeemed it on an Indian exchange. Its better if you show yourself as a Digital Marketing Agency and file your return under Profits and gains from Business. In this way you will be able to take advantage of "Presumptive Income Scheme" in which you can declare your total earnings and even subtract some expenses such as Internet Cost, Electricity cost etc. better ask your CA regarding it. So if you have earned received for eg. ₹200,000 in form of Receipts from signature campaigns you can deduct some expenses and file a return under 44ADA.
Section 44ADA of Indian Income tax act says that certain professionals as mentioned under section 44AA(1) will only have the benefit of declaring their income under section 44ADA. Now section 44AA(1) says,
(1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette' shall keep and maintain such books.
Now lets look at the books to be maintained to get the benefits of 44ADA -
– Cash book;
– Journal;
– Ledger;
– Carbon copies of the bills and receipts issued by the person in relation to sums exceeding Rs.25;
– Original bills and receipts issued to the person in respect of the expenditure incurred.
If an individual is earning from signature campaign, such books can't be maintained! It's best to show the income under "Income from other sources" and pay taxes accordingly!
Information source:
https://studycafe.in/2013/07/section-44aa-persons-required-to-maintain-books-of-accounts.html I am withdrawing the above quoted post! OP is absolutely correct! I just had a discussion with my CA regarding my tax filing this year and he suggested the same! I am going to file my crypto earnings under 40ADA this year! There are some major benefits as explained by my CA,
1. 40ADA is specifically mentioned for few professionals and freelancing is one of them.
2 Accounting not required
3. Straight away deduct 50% from your total earnings as expenses
4. Audit not required
Go ahead with 40ADA if you are earning in cryptos from freelancing or from signature campaigns.