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Annual compliance map for solo architects, design studios, interior decorators and project consultants — Income Tax, TDS, GST on professional services, Profession Tax, and the Rule 6F bookkeeping baseline.
Section 44ADA treats half your gross receipts as profit and skips the audit entirely — but only if your receipts stay below Rs 75 lakh and cash is under 5%. Cross either line by one rupee and you fall into full books under Rule 6F, a Form 3CB-3CD audit, and the entire AY's TDS reconciliation moves from optional to mandatory.
Source: Section 44ADA, Income Tax Act 1961 — gross receipts threshold raised from Rs 50 lakh to Rs 75 lakh by the Finance Act 2023 (where cash receipts do not exceed 5%).Architecture and interior decoration are listed as specified professions under Section 44AA(1) of the Income Tax Act, which means three things at once: you have a Rs 75 lakh presumptive ceiling under 44ADA, you fall under Rule 6F for books once you cross Rs 1.5 lakh in receipts in any of the three preceding years, and your tax audit threshold is Rs 50 lakh of gross receipts, not the Rs 1 crore turnover threshold that businesses get.
On the indirect-tax side, both architecture (SAC 998391) and interior decoration (SAC 998392) are taxable at 18% with full ITC. There is no exemption, no composition, no QRMP relaxation specific to professionals. The KPIs below assume a typical studio practice — adjust if you run a sole proprietorship or a design LLP.
The Income Tax Act 1961 — and the new Income Tax Act 2025 effective 1 April 2026 — keep the same pillars: pay advance tax on time, file an accurate return, and stay clean on cash. The KPIs below are the ones an audit officer pulls up first if your file lands on a scrutiny desk.
| KPI / Compliance Item | Threshold & Action | Due Date | Source |
|---|---|---|---|
| Presumptive scheme u/s 44ADA | 50% of gross receipts is deemed as profit. Available if receipts are below Rs 75 lakh and cash receipts are under 5%. Once opted out, you cannot opt back in for 5 years. | ITR by 31 Jul 2027 | Sec 44ADA |
| Tax audit u/s 44AB(b) | Mandatory if gross receipts cross Rs 50 lakh AND you have not opted for 44ADA. Note this is receipts, not turnover. | 30 Sep 2027 | Sec 44AB(b) |
| Advance tax | Pay 15 / 45 / 75 / 100 percent of liability by the four instalment dates. 44ADA assessees may pay 100% by 15 March. | Quarterly | Sec 208–211 / 211(1)(b) |
| Cash receipt cap (269ST) | You cannot accept more than Rs 2 lakh in cash from one client per project, per certificate or per day. Penalty equals the amount. | Continuous | Sec 269ST |
| Cash loan cap (269SS / 269T) | Cannot accept or repay loans, deposits or advances above Rs 20,000 in cash. Common trap when a junior partner brings in capital in cash. | Continuous | Sec 269SS / 269T |
| Books under Rule 6F | If you are a specified professional and receipts in any of the three preceding years crossed Rs 1.5 lakh, maintain cash book, journal, ledger, copies of bills above Rs 50, and original supporting bills. | Continuous | Rule 6F |
| ITR filing | ITR-3 (proprietor with books) / ITR-4 SUGAM (44ADA) / ITR-5 (LLP). Audit cases get the 31 October due date. | 31 Jul or 31 Oct 2027 | Sec 139(1) |
TDS payments are due by the 7th of the next month (March is 30 April), and quarterly Form 26Q or 27EQ returns drive Form 16 / 16A on TRACES. Late filing of the return alone costs Rs 200 per day under Sec 234E.
| KPI / Compliance Item | Threshold & Action | Due Date | Source |
|---|---|---|---|
| 194J — Sub-architect, structural consultant, BIM consultant | 10% on professional fees above Rs 30,000 in the FY paid to other professionals you engage. | 7th of next month | Sec 194J |
| 194C — Site supervisor, model-maker, render contractor | 1% / 2% on payments above Rs 30,000 single bill or Rs 1 lakh aggregate. | 7th of next month | Sec 194C |
| 194I — Studio rent | 10% on office or studio rent above Rs 2.4 lakh in the FY. | 7th of next month | Sec 194I |
| 194H — Referral commission to brokers, builders, architects | 5% on commission paid above Rs 15,000 in the FY. | 7th of next month | Sec 194H |
| Client side — your fee receipts | Corporate clients deduct 194J at 10% on your professional fees. Reconcile every credit in 26AS / AIS before filing the ITR. | Quarterly | Sec 194J |
| Quarterly TDS return (Form 26Q) | Late filing alone costs Rs 200 per day under 234E. | 31 Jul, 31 Oct, 31 Jan, 31 May | Rule 31A |
GST is the most data-rich compliance regime — every invoice you raise and every invoice you receive sits on the network. Use GSTR-2B, not 2A, as your reconciliation base from FY 2022-23 onwards.
| KPI / Compliance Item | Threshold & Action | Due Date | Source |
|---|---|---|---|
| Architecture services — SAC 998391 | 18% with full ITC. | Continuous | Notification 11/2017-CT(R) Sl. 21 |
| Interior decoration services — SAC 998392 | 18% with full ITC. | Continuous | Notification 11/2017-CT(R) Sl. 21 |
| Registration threshold | Rs 20 lakh aggregate turnover (Rs 10 lakh for special-category states). Inter-state supply needs registration from Rs 1. | Continuous | Sec 22 read with 24 CGST |
| Pure agent reimbursements (Rule 33) | Sample purchases, courier, model-printing paid on behalf of the client — exclude from value of supply only if the conditions of Rule 33 are met (separately disclosed, no margin, third-party invoice in client's name). | Continuous | Rule 33 CGST Rules |
| Reverse charge on inputs | Pay GST under RCM on legal services received from advocates and on goods transport agency services. | Monthly | Sec 9(3) + Notification 13/2017-CT(R) |
| Export of services (foreign clients) | Zero-rated supply. Either pay IGST and claim refund, or supply under LUT (Letter of Undertaking) — the LUT must be renewed every FY before 1 April. | Annual LUT | Sec 16 IGST + Rule 96A CGST |
| E-invoicing | Mandatory if aggregate turnover crossed Rs 5 crore in any FY since 2017-18. Most studios are below this; design LLPs with several partners often cross. | Every B2B invoice | Rule 48(4) |
| GSTR-1 / 3B / 9 / 9C | Monthly returns; QRMP if turnover at or below Rs 5 crore. Annual return if turnover above Rs 2 crore; reconciliation if above Rs 5 crore. | 11th / 20th / 31 Dec | Sec 37 / 39 / 44 |
Profession Tax is a state levy run by the Maharashtra Goods & Services Tax Department. There are two registrations and most businesses need both — one for the owner, one for the staff.
| Registration | Who needs it / what you pay | Due date | Source |
|---|---|---|---|
| PTEC (Enrolment) |
For the proprietor, partner, director, LLP or company. Flat Rs 2,500 per year for most non-salaried professions and businesses. | 30 June | MahaGST PT Act 1975 |
| PTRC (Registration) |
For employers paying salary above Rs 7,500 p.m. (male) or Rs 25,000 p.m. (female). Slabs: Rs 175 p.m. for Rs 7,501–10,000 (male); Rs 200 p.m. plus Rs 300 in February if salary exceeds Rs 10,000. Annual ceiling Rs 2,500 per employee. | Last day of the next month | MahaGST PT Rules |
If your previous-year PT liability crossed Rs 1 lakh, file PTRC monthly. Below that, annual is fine. Returns go on mahagst.gov.in. Late filing costs Rs 1,000 per return plus 1.25% interest a month.
Section 44AA of the Income Tax Act and Section 35 (read with Rule 56) of the CGST Act set the bookkeeping baseline. For most non-professional businesses, books are required if income is above Rs 2.5 lakh or turnover above Rs 25 lakh in any of the three preceding years.
One folder per FY, with sub-folders: sales invoices, purchase invoices, bank statements, GST returns, TDS challans and returns, ROC filings, expense bills, statutory dues, loan documents, fixed asset purchases. Scan everything within 30 days. Scanned PDFs are accepted as books under Rule 6F(5) and CGST Rule 56(15).
The four mistakes our team sees most often when we take over books from another firm:
If sample purchases, model printing or courier are billed in one line with your professional fees, you lose Rule 33 pure-agent benefit. The whole amount is then taxable at 18% and disallowed reimbursement to boot. Show reimbursements on a separate invoice with the third-party invoice in the client's name attached.
44ADA is an all-or-nothing election. The moment you claim depreciation, salaries to draftsmen or studio rent as deductions in the same return, the AO disallows the 50% deemed profit benefit and you lose both routes.
An LUT is FY-specific. If a foreign retainer invoice goes out on 5 April without a fresh LUT, the supply becomes a regular taxable supply at 18% IGST — the foreign client cannot claim it back, and you cannot recover it from them later.
44ADA threshold is on gross receipts including reimbursements that are not covered by Rule 33. A single Rs 80,000 site-visit reimbursement can push receipts from Rs 74.5 lakh to Rs 75.3 lakh and knock you out of 44ADA for the whole year.
| Month | Compliance milestones |
|---|---|
| April | TDS payment for March (30 Apr); GSTR-1 / 3B for March; PT employee deduction. |
| May | Q4 TDS return Form 26Q (31 May); Form 16A; SFT-005 / 61A (31 May). |
| June | Form 16 to employees (15 Jun); Q1 advance tax (15 Jun); PTEC payment (30 Jun). |
| July | Q1 TDS return (31 Jul); ITR for non-audit cases (31 Jul); QRMP option last month. |
| August | Routine GSTR-1 / 3B; e-invoice review. |
| September | Tax audit report u/s 44AB (30 Sep); Form 10B / 10BB (30 Sep) for trusts; Q2 advance tax (15 Sep). |
| October | Q2 TDS return (31 Oct); ITR for audit cases (31 Oct); GSTR-9 prep starts. |
| November | ITR for transfer-pricing cases (30 Nov). |
| December | Q3 advance tax (15 Dec); GSTR-9 / 9C filing (31 Dec). |
| January | Q3 TDS return (31 Jan); books reconciliation for FY closing. |
| February | Stock-take preparation; PT special slab (Rs 300 in Feb). |
| March | Q4 advance tax (15 Mar); Annexure V for GTAs (31 Mar); books closure; year-end TDS. |
Talk to our compliance team. We work with contractors, traders, hotels, hospitals, transporters and manufacturers across Maharashtra.
Book a Free ConsultationLedger Logic advises businesses across Bhusawal, Mumbai and Pune on Income Tax, TDS, GST, Profession Tax and statutory bookkeeping. The points above are general guidance — please consult your CA before acting on a specific transaction.