Home office expense claims are defensible only when they are reasonable, business-linked and documented. The weak claim is “I work from home, so claim everything.” The stronger claim is a measured business-use allocation backed by invoices and work evidence.
| Question | Good answer |
|---|---|
| Is the activity taxable as business/profession? | Show invoices, clients, projects and regular work activity. |
| Is the expense business-linked? | Internet, electricity, rent, furniture or repairs should have clear business purpose. |
| Is there personal use? | Use a reasonable allocation instead of claiming 100%. |
| Is evidence retained? | Keep bills, rent agreement, payment trail and allocation worksheet. |
Where an eligible professional opts for presumptive taxation under Section 44ADA, official guidance says presumptive income is final and no further expenses are allowed. In that case, home-office cost may help understand profitability but is generally not an extra deduction.
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Where income is reported under business/profession and expenses are business-linked, documented and reasonable, a claim may be defensible.
Usually that is risky unless facts support full business use. A reasonable business-use allocation is safer.
Official 44ADA guidance says presumptive income is final and no further expense deduction is allowed.