• Oct
  • 16
  • 2014

Presumptive taxation U/s. 44AD, 44AE, 44AF with FAQs

Posted In Income Tax | | 47 Comments » Print Friendly and PDF

Sections 44AD, 44AE and 44 AF cover special provisions of computing profits on a presumptive basis. All the schemes are optional at the discretion of the assessee. Conditions and manner of computation common to all three sections are given at the end after specific provisions applying to each section.

A. Section 44AD – Presumptive computation of profits for taxation for business

(Provisions as Applicable from A.Y. 2011-12, the old provisions pertaining to Section 44AD will continue to apply till March 2010)

1] Applies to:

Any eligible assessee engaged in an eligible business. Eligible assessee is defined as an individual, HUF, resident partnership firm, but excludes an LLP under the LLP Act, 2008 and any assessee who has claimed a deduction under sections 10A, 10AA, 10B, 10BA or heading C of Chapter VIA (sections 80I-A, 80-IB, etc.). An eligible business means any business other than the business of plying, hiring, or leasing of goods carriage as given in section 44AE and whose turnover/gross receipt in the previous year does not exceed Rs. 60,00,000 in A.Y. 2011-12 and 2012-13 and Rs. 1,00,00,000 in AY 2013-14 or in Year Succeeding the AY 2013-14.

2] Deemed Income:

8% of the total turnover or gross receipts of the assessee on account of such business or any higher amount voluntarily declared by him shall be deemed to be his income chargeable to tax.

Refer to ‘A] Conditions’ and ‘B] Computation’ below.

Provisions of Chapter XVII C relating to Advance Payment of taxes will not apply to the eligible assessee in respect of eligible business only.

C. Section 44AE – Business of plying, leasing or hiring trucks

(Applicable till A.Y. 2010-11, this section is amended from A.Y. 2011-12 details of which are given in paragraph D)

1] Applies to:

Any person engaged in the business of plying, leasing or hiring of trucks if he owns not more than 10 goods carriages at any time during the previous year including those taken on hire purchase or on instalments. This scheme does not apply to those who operate trucks on hire without owning them (Circular 684, dt. 10-6-1994)

2] Income:

Type of Goods Carriage Estimated Income
Heavy Goods Vehicle Rs. 3,500 for every month (or part of a month) during which the goods carriage is owned by the taxpayer.
Other than Heavy goods vehicle Rs. 3,150 for every month (or part of a month) during which the goods carriage is owned by the tax-payer.

Refer to ‘A] Conditions’ and ‘B] Computation’ below.

D. Business of plying, leasing or hiring trucks – Section 44AE

(Applicable from A.Y. 2011-12, the old provisions pertaining to Section 44AE will continue to apply till March 2010)

1] Applies to:

Any person engaged in the business of plying, leasing or hiring of trucks if he owns not more than 10 goods carriages at any time during the previous year including those taken on hire purchase or on instalments. This scheme does not apply to those who operate trucks on hire without owning them (Circular 684, dt. 10-6-1994)

2] Deemed Income:

Type of Goods Carriage Estimated Income
Heavy Goods Vehicle Higher of Rs. 5,000 for every month (or part of a month) during which the goods carriage is owned by the tax-payer or an
amount actually earned from such vehicle.
Other than Heavy goods vehicle Higher of Rs. 4,500 for every month (or part of a month) during which the goods carriage is owned by the tax-payer or an
amount actually earned from such vehicle.

Refer to ‘A] Conditions’ and ‘B] Computation’ below.

E. Section 44AF – Business of retail trading of goods

(Applicable till A.Y. 2010-11, this section will become inoperative from AY 2011-12 and the retail traders can choose to be governed by section 44AD from A.Y. 2011-12 which requires presumptive income at 8% of gross receipts/turnover)

1] Applies to:

Any person engaged in the business of retail trade in any goods or merchandise shall be covered by this provision. If his turnover from the above business do not exceed Rs. 40 lakhs.

2] Deemed Income:

5% of the total turnover of such person or a higher sum voluntarily declared by him shall be deemed to be his income from such business.

Refer to ‘A] Conditions’ and ‘B] Computation’ below.

Common Conditions and Computation method:

A. Conditions:

All deductions u/s. 30 to 38 including depreciation deemed to be allowed. No further deduction allowed under those sections.

The written down value of asset used in the business will be computed as if depreciation, as applicable, was allowed.

It will be assumed that disallowances if any u/ss. 40, 40A and 43B were considered by calculating the income estimated in 2] above.

In the case of a firm, the deduction in respect of salary and interest to partners u/s. 40(b) will be allowed.

In respect of this business the assessee is not required to maintain books of account as per the provisions of s. 44AA.

The assessee is not required to get the books of account audited u/s. 44AB in respect of the above business.

If the assessee wants to declare lower income than the deemed profits as calculated above, he will have to maintain the books of account as per s. 44AA and get the accounts audited as per s. 44AB irrespective of turnover if his total income exceeds basic exemption limit.

B. Computation:

The income calculated above shall be aggregated with income from any other business or other heads of income under the other provisions of the Income-tax Act.

The brought forward business losses and other losses will be deducted.

All deductions u/ss. 80CCC to 80U shall be allowed

NOTE:

1. The profit and loss from related businesses covered by sections 44B, 44BB, 44BBA, 44BBB, namely Shipping business in case of non-residents, Business of exploration, etc. of mineral oils, Operation of aircraft in case of non-residents, Foreign companies engaged in the business of civil construction, etc., in certain turnkey projects are not covered here as they have lower relevance and usage.

2. Year wise limit for section 44AB tax audit from financial year 2009-10 is given here under .
SR N0
FINANCIAL YEAR
LIMIT (BUSINESS)
PROFESSIONAL
1
2009-10
  40   LAKH
10 LAKH
2
2010-11,2011-12
  60   LAKH
15 LAKH
3
2012-13 ONWARDS
100 LAKH
25 LAKH

FAQs on Tax on Presumptive Taxation Scheme

​What is the meaning of presumptive taxation scheme?

​ ​As per the Income-tax Law, a person engaged in business is required to maintain regular books of account and further, he has to get his accounts audited. To give relief to small taxpayers from this tedious work, the Income-tax Law has framed the presumptive taxation scheme under sections 44AD and 44AE.
A person adopting the presumptive taxation scheme can declare income at a prescribed rate and, in turn, is relieved from tedious job of maintenance of books of account and also from getting the accounts audited.
For small taxpayers the Income-tax Law has framed two presumptive taxation schemes as given below:
1) The presumptive taxation scheme of section 44AD.
2) The presumptive taxation scheme of sections 44AE​.

​For whom the presumptive taxation scheme of section 44AD is designed?

​​The presumptive taxation scheme of section 44AD​ is designed to give relief to small taxpayers engaged in any business (except the business of plying, hiring or leasing goods carriages referred to in sections 44AE). ​

​Who is eligible to take advantage of the presumptive taxation scheme of section 44AD?

​The presumptive taxation scheme of section 44AD can be adopted by following persons :
1) Resident Individual
2) Resident Hindu Undivided Family
3) Resident Partnership Firm (not Limited Liability Partnership Firm)
In other words, the scheme cannot be adopted by a non-resident and by any person other than an individual, a HUF or a partnership firm (not Limited Liability Partnership Firm).
These provisions cannot be adopted by a person who has made any claim towards deductions under section 10A/ 10AA/10B/ 10BA or under sections 80HH to ​80RRB in the relevant year.

​Which businesses are not eligible for presumptive taxation scheme?

​​​The scheme of section 44ADD​ is designed to give relief to small taxpayers engaged in any business, except the following businesses:
·Business of plying, hiring or leasing goods carriages referred to in sections 44AE​.
·A person who is carrying on any agency business.
·A person who is earning income in the nature of commission or brokerage
Apart from above discussed businesses, a person carrying on profession as referred to in section 44AA​(1)  is not eligible for presumptive taxation scheme.

​Can an insurance agent adopt the presumptive taxation scheme of section 44AD?

​​A person who is earning income in the nature of commission or brokerage cannot adopt the presumptive taxation scheme of section 44AD. Insurance agents earn income by way of commission and, hence, they cannot adopt the presumptive taxation scheme of section 44AD​​.

​Can a person engaged in a profession as prescribed under section 44AA(1) adopt the presumptive taxation scheme of section 44AD?

​​​A person who is engaged in any profession as prescribed under section 44AA(1)​​ cannot adopt the presumptive taxation scheme of section 44AD.​

​ Can a person whose total turnover or gross receipts for the year exceed Rs. 1,00,00,000 adopt the presumptive taxation scheme of section 44AD?

​​The presumptive taxation scheme of section 44AD can be opted  by the eligible persons if the total turnover or gross receipts from the business do not exceed the limit of audit prescribed under section 44AB (i.e., Rs. 1,00,00,000). In other words, if the total turnover or gross receipt of the business exceeds Rs. 1,00,00,000 then the scheme of section 44AD​ cannot be adopted.

​ What is the manner of computation of taxable business income under the normal provisions of the Income-tax Law, i.e., in case of a person not adopting the presumptive taxation scheme of section 44AD?

​Generally, as per the Income-tax Law, the taxable business income of every person is computed as follows :

Particulars Amount
Turnover or gross receipts from the business XXXXX
Less : Expenses incurred in relation to earning of the income (XXXXX)
Taxable Business Income XXXXX

For the purpose of computing taxable business income in the above manner, the taxpayers have to maintain books of account of the business and income will be computed on the basis of the information revealed in the books of account

​ What is the manner of computation of taxable business income in case of a person adopting the presumptive taxation scheme of section 44AD?

​In case of a person adopting the provisions of section 44AD, income will be computed on presumptive basis, i.e., @ 8% of the turnover or gross receipts of the eligible business for the year.
In other words, in case of a person adopting the provisions of section 44AD​ , income will not be computed in normal manner as discussed in previous FAQ (i.e., Turnover less Expense) but will be computed @ 8% of the turnover.
Income at higher rate, i.e., higher than 8% can be declared if the actual income is higher than 8%.

​ As per the presumptive taxation scheme of section 44AD, income of a taxpayer will be computed @ 8% of the turnover or gross receipt and from the income of 8% can the taxpayer claim any further deductions?

​ ​Under the normal provisions of the Income-tax Law, taxable business income will be computed after allowing deduction in respect of expenses which are deductible as per the Income-tax Law and after disallowing expenses which are not deductible as per the Income-tax Law.
In case of a person who is opting for the presumptive taxation scheme of section 44AD, the provisions of allowance/disallowances as provided under the Income-tax Law will not apply and income computed at the presumptive rate of 8% will be the final taxable income of the business covered under the presumptive taxation scheme. In other words, the income computed @ 8% will be the final taxable income of the business covered under the presumptive taxation scheme and no further expenses will be allowed or disallowed.
However, in case of a taxpayer being a partnership firm opting for the presumptive taxation scheme, from the income computed @ 8% of the turnover further deduction can be claimed on account of remuneration and interest paid to partners (computed as per the Income-tax Law).
While computing income as per the provisions of section 44AD, separate deduction on account of depreciation is not available, however, the written down value of any asset used in such business shall be calculated as if depreciation as per section 32​ is claimed and has been actually allowed.

​ If a person adopts the presumptive taxation scheme of section 44AD, then is he required to maintain books of account as per section 44AA?

​ section 44AA deals with provisions relating to maintenance of books of account by a person engaged in business/profession. Thus, a person engaged in business/profession has to maintain books of account of his business/profession according to the provisions of section 44AA.
In case of a person engaged in a business and opting for the presumptive taxation scheme of section 44AD, the provisions of section 44AA relating to maintenance of books of account will not apply. In other words, if a person adopts the provisions of section 44AD and declares income @ 8% of the turnover, then he is not required to maintain the books of account as provided under section 44AA in respect of business covered under the presumptive taxation scheme of section 44AD​ . Apart from giving relief from maintenance of books of account, the scheme also relieves the taxpayer from the audit of the books of account.

​ If a person adopts the presumptive taxation scheme of section 44AD, then is he liable to pay advance tax in respect of income from business covered under section 44AD?

​​A person opting for the presumptive taxation scheme of section 44AD will not be liable to pay advance tax in respect of income from business covered under section 44AD​.​

​ What provisions will apply if a person does not opt for the presumptive taxation scheme of section 44AD and declares his income at a lower rate (i.e. less than 8%)?

​ ​A person can declare income at lower rate (i.e., less than 8%), however, if he does so, and his income exceeds the maximum amount which is not chargeable to tax, then he is required to maintain the books of account as per the provisions of section 44AA​ and has to get his accounts audited.​

​For whom the presumptive taxation scheme of section 44AE is designed?

​​The scheme of sections 44AE​ is designed to give relief to small taxpayers engaged in the business of plying, hiring or leasing goods carriages.​

​ Who is eligible to take advantage of the presumptive taxation scheme of section 44AE and which business is eligible for the presumptive taxation scheme of section 44AE?

​​The provisions of sections 44AE are applicable to every person (i.e., an individual, HUF, firm, company, etc.).
The presumptive taxation scheme of sections 44AE​ can be adopted by a person who is engaged in the business of plying, hiring or leasing goods carriages and who does not own more than 10 goods vehicles at any time during the year.

​Can a person who owns more than 10 goods vehicles adopt the presumptive taxation scheme of section 44AE?

​The presumptive taxation scheme of sections 44AE​ can be adopted by a person who is engaged in the business of plying, hiring or leasing goods carriages and who does not own more than 10 goods vehicles at any time during the year.
The important criterion of the scheme is the restriction of owning of not more than 10 goods vehicles at any time during the year. Thus, if a person owns more than 10 goods vehicles at any time during the year, then he cannot take advantage of this scheme.

​ What is the manner of computation of taxable business income in case of a person adopting the presumptive taxation scheme of section 44AE?

​In case of a person who is willing to opt for the presumptive taxation scheme of sections 44AE, income will be computed on an estimated basis. The rate of computation of income is different for heavy goods vehicles and other than heavy goods vehicles. The rates are as follows:

In respect of heavy goods vehicle (*) income will be computed @ Rs. 5,000 per month or part thereof during which the heavy goods vehicle is owned by the taxpayer, during the year.

(*) “Heavy goods vehicle” means any goods carriage the gross vehicle weight of which, or a tractor or a road-roller the unladen weight of either of which, exceeds 12,000 kilograms.

In case of any other goods vehicle (i.e., other than heavy goods vehicle) income will be computed @ Rs. 4,500 per month or part thereof during which the goods vehicle is owned by the taxpayer during the year.
 
Note: If the actual income is higher, than the presumptive rate, i.e., higher than Rs. 5,000/Rs.4,500, then such higher income can be declared.

Note: Part of the month would be considered as full month.

Illustration for better understanding

Mr. Khush is engaged in the business of plying, hiring or leasing goods carriage. Throughout the year 2013-14 he owned 9 goods vehicle (5 heavy goods vehicle and 4 other than heavy goods vehicle). What will be the taxable income from the business of plying, hiring or leasing goods carriages if he adopts the provisions of sections 44AE?

**

As per the provisions of sections 44AE, in respect of heavy goods vehicle income will be computed @ Rs. 5,000 per month or part thereof during which the heavy goods vehicle is owned by the taxpayer during the year. In respect of other goods vehicle (other than heavy goods vehicle) income will be computed @ Rs. 4,500 per month or part thereof during which the goods vehicle (other than heavy goods vehicle) is owned by the taxpayer during the year.

In the present case Mr. Khush owned 5 heavy goods vehicle and 4 other goods vehicle (i.e. other than heavy goods vehicle) throughout the year and hence income will be computed as follows:

​Particulars Rs.​
Income from heavy goods vehicle
Income per month per heavy goods vehicle 5,000
(×) No. of heavy goods vehicle        5
Monthly income as per the provisions of sections 44AE from 5 heavy goods vehicle 25,000
(×) No. of months in the year during which the vehicle was owned        12
Total income as per the provisions of sections 44AE from 5 heavy goods vehicle (A) 3,00,000
Income from other goods vehicle (i.e. other than heavy goods vehicle)
Income per month per vehicle (i.e. other than heavy goods vehicle) 4,500
(×) No. of vehicle        4
Monthly income as per the provisions of sections 44AE​ from 4 other goods vehicle (i.e. other than heavy goods vehicle) 18,000
(×) No. of months in the year during which the vehicle was owned        12
Total income as per the provisions of sections 44AE from 4 other goods vehicle (i.e. other than heavy goods vehicle) (B) 2,16,000
Total income from business of plying, hiring or leasing goods carriages as per the provisions of sections 44AE (A + B) 5,16,000

 As per the presumptive taxation scheme of section 44AE, income of a taxpayer will be computed at the rate of Rs. 4,500/Rs. 5,000 per goods vehicle per month and in such a case can the taxpayer claim any further deductions from the presumptive income declared at the prescribed rate?

​ ​Under the normal provisions of the Income-tax Law, taxable business income will be computed after allowing deduction in respect of expenses which are deductible as per the Income-tax Law and after disallowing expenses which are not deductible as per the Income-tax Law.

In case of a person who is opting for the presumptive taxation scheme of sections 44AE, the provisions of allowance/disallowances as provided under the Income-tax Law, will not apply and income computed at the presumptive rate of Rs. 4,500/Rs. 5,000 per goods vehicle per month will be the final income. In other words, the income computed at the rate of Rs. 4,500/Rs. 5,000 per goods vehicle per month will be the final taxable income of the business and no further expenses will be allowed or disallowed.

However, in case of a taxpayer, being a partnership firm, opting for the presumptive taxation scheme, from the income computed at the rate of Rs. 4,500/Rs. 5,000 per goods vehicle per month, further deduction can be claimed on account of remuneration and interest paid to partners (computed as per the Income-tax Law).

While computing income as per the provisions of sections 44AE, separate deduction on account of depreciation is not available, however, the written down value of any asset used in such business shall be calculated as if depreciation as per section 32​ is claimed and has been actually allowed.

​ If a person adopts the presumptive taxation scheme of section 44AE, then is he required to maintain books of account as per section 44AA?

section 44AA of the Income-tax Act, 1961 has provisions relating to maintenance of books of account by a person engaged in business/profession. Thus, a person engaged in business/profession has to maintain books of account of his business according to the provisions of section 44AA.
In case of a person opting for the presumptive taxation scheme of section 44AE, the provisions of section 44AA relating to maintenance of books of account will not apply. In other words, if a person adopts the provisions of section 44AE and declares his income at the rate of Rs. 4,500/Rs. 5,000 per goods vehicle per month, then he is not required to maintain the books of account as provided under section 44AA in respect of business covered under the presumptive taxation scheme of section 44AE. Apart from giving relief from maintenance of books of account, the scheme also relieves the taxpayer from audit of books of account under section 44AB​.

​ If a person adopts the presumptive taxation scheme of section 44AE, then is he liable to pay advance tax in respect of income from business covered under section 44AE?

​ ​There is no concession as regards payment of advance tax in case of a person who is adopting the presumptive taxation scheme of section 44AE and, hence, he will be liable to pay advance tax even if he adopts the presumptive taxation scheme of section 44AE​. ​

What provisions will apply if a person does not opt for the presumptive taxation scheme of section 44AE and declares his income at a lower rate?

​ ​A person can declare his income at lower rate (i.e., less than Rs. 4,500/Rs. 5,000 per goods vehicle per month). However, if he does so, then he is required to maintain the books of account as per the provisions of section 44AA and has to get his accounts audited under section 44AB​.
FAQ Source- Incometaxindia Website

(Republished with amendments)


47 Responses to “Presumptive taxation U/s. 44AD, 44AE, 44AF with FAQs”

  1. G.P.Gupta says:

    1-kya h u f koi bhi business kar sakta hai jaise indudal karta hai, as a propriotor, Partner , Director , Trusty , Salary person , Doner etc.

    2-kya whole saler jiska tornover 5800000 hai without audit less than 8% profit decler karsakta hai .

    3- kya without dizital audit return nahi ja sakti hai

  2. prabhakar says:

    Dear Sir,
    I am accountant in Nandyal, We clarify small doubt, Pl very below computation correct or wrong.

    44AD Income 175000
    INCOME FROM OTHERSOURCES
    Interest paid 25000
    ——
    total income 150000
    ——
    Requested you sir, Pl above calculation correct or wrong.

  3. pankaj says:

    Dear sir,,

    Whether salary received by partner can be offered under the Section 44AD while filling return of income.

  4. Md Fakrudeen says:

    Dear Sir,
    Kindly suggest me under which section the income from operation of ACE CRANES will be taxed . it will cover under which section of presumptive taxation scheme under section 44AD , 44AE or 44 AF and what will be the monthly estimated income. I have income from other sources also i.e from Salary and other business.

    Please advise me
    Thanks & regards

  5. kumar says:

    Can you please tell is there any exemption for website income

  6. D.K.KRISHNE GOWDA says:

    I AM RECEIVED PROFESSIONAL INCOME SHALL I FILE IT RETURN U/S 44 AD OR

  7. Ashish rathi says:

    Notwi thstanding an y t h i n g con t ai n ed i n t h e f oreg oi n g prov i si on s of t h i s sect i on , an el i g i bl e assessee wh o cl ai m s t h at
    h i s prof i t s an d g ai n s f rom t h e el i g i bl e bu si n ess are l ower t h an t h e prof i t s an d g ai n s speci f i ed i n su b- sect i on (1) an d
    wh ose t ot al i n com e ex ceeds t h e m ax i m u m am ou n t wh i ch i s n ot ch arg eabl e t o i n com e- t ax , sh al l be requ i red t o
    keep an d m ai n t ai n su ch books of accou n t an d ot h er documen t s as requ i red u n der su b- sect i on (2) of sect i on
    44AA an d g et t h em au di t ed an d f u rn i sh a report of such au di t as requ i red u n der sect i on 44AB.
    ◊Th i s su bsect i on t al ks of two cu m u l at i v e con di t i on s f or appl i cabi l i t y of 44AA an d 44AB: -i . Th e In com e f rom el i g i bl e bu si n ess i s l ower t h an 8% of Tu rn ov er or Gross Recei pt s,
    AND
    i i . Th e “ TOTAL INCOME” ex ceeds t h e m ax i m u m am ou n t n ot ch arg eabl e t o t ax .
    MY QUESTION : DOES TDS PROVISION ARE APPLICABLE TO ASSESSEE AT TIME OF FIRST
    YEAR OF TAX AUDIT ?

  8. Nirupama Bhat says:

    I have leased a car to company for use of their employees.
    What is the income I have to show u/s 44AE while filing returns. Is it @ 4150 per month or actual, which is 15000 per month

  9. manas says:

    Dear Sir,

    I have a income on commission in insurance policy and also done share trading and income from salary .so please tell which ITR is for me.

  10. B D Bendale says:

    Sir
    Since I am getting professional fee for offering civil technical consultancy
    services, can I opt for using ITR 4 Sugam under presumptive income. if not which ITR form shall be used for submission.

  11. SANTOSH KUMAR SHUKLA says:

    Dear Sir,
    I am an individual assessee have a demate account.I have made sale & purchase of share in our demate account and suffer a loss.Please suggest me whether we have to get audit of our demate account having turnover 42 Lac Approx.Is 44AD section will apply in our case.
    Please.

  12. ANKIT says:

    i had an income of rs 165900/ from fees from professional or technical services (194) wihch itr do i file for the AY 14-15 (4 OR 4S) FOR getting refund

  13. velanakul says:

    Taxable Turn Over U/S 2 (34) : rule of the value added tax rule 2005, provides deathl guidelines to determine taxable turnover on which a dealer is liable to remit ….

  14. shridhar says:

    if a person turnover is 1000000 which itr he should file, if his business is wholesale

  15. shridhar says:

    Any person engaged in the business of retail trade in any goods or merchandise shall be covered by this provision. If his turnover from the above business do not exceed Rs. 40 lakhs.

    Is it 40 Lakhs or 60 Lakhs for AY 2012-13 ?

  16. chandan says:

    can a medicine profesional(doctor) file return form 4s

  17. shailendra panwar says:

    Dear Sir,
    I have purchased a JCB machine in Feb 14 financed by Tata Capital Ltd.,Kindly suggest me under which section the income from operation of JCB will be taxed . it will cover under which section of presumptive taxation scheme under section 44AD , 44AE or 44 AF and what will be the monthly estimated income. I have income from other sources also i.e from Salary and other business.

    Please advice me.

    Thanks & Regards

    Shailendra panwar
    mobile 9826806009

  18. aasif says:

    i want to know about 44ad section, and want know name of particular businesses which allow under this section

  19. jitendrasinh says:

    MY CASE IS OPEN FOR SCRUTINY ON THE BASIS OF CASS FOR CASH DEPOSIT INTO A BANK ACCOUNT. I HAD 5 TRUCKS & THE RETURN FILED U/S 44AE I AM ALSO SHWON INCOME 44AD PROFIT (8%) AND U/S 44AE.
    MY QUESTION IS WHETHER THE ASSESSING OFFICER ASK ME TO FURNISH THE BOOKS OF ACCOUNT, DETAILS OF MY BANK ACCOUNT & SOURCES OF CASH DEPOSITED INTO BANK.

  20. Nilesh says:

    i am manufacture and supplier of goods and i own 3 trucks so i have income under both sec 44AD and 44AE . so ho should i calculate my income ? which ITR to be filled ? my total turnover is around 70 lakhs

  21. PIYUSH says:

    I have business income from Rent a cab i.e. hiring a motor car. i have shown profit around 9% to 10%. under which section i have to file my return is it U/s. 44AD or 44AE.

  22. Prashant Jain says:

    In case of a partnership firm is 8% of turnover to be calculated after remuneration and interest of partners or before.
    Please Advise.

  23. MAULIK PANKHANIYA says:

    to ajinkya modak
    it is possible
    you can declare profit of 8 %
    but you have to show other profit as unsecured loan and lower amt as a gift from persons …

  24. NISHITH says:

    MY CLIENT HAVE 7 TRUCKS.HIS GROSS RECEIPT OF CARTING INCOME IS APPROX.1.20 CRORE,
    HE IS REXDY TO SHOWN INCOME 60000/-PER TRUCK.AS GROSS RECEIPT IS EXCEDDING RS.1.00 CRORE TAX AUDIT REQUIRED?

  25. AM says:

    I am involved in research based software development for a client in US and I send them monthly invoices in USD. I have been given to understand that ITR-4S is the most suitable return for me. Could you please confirm which ITR should I file, ITR-4S or ITR-4? Thanks.

  26. jyoti says:

    wud like to thank for specisal provisions realting to44………..

  27. PARTHA PRATIM MANDAL says:

    sec44AE ACT

  28. Dinesh Purohit says:

    Sir, i am dong service in pvt sect. and i am getting salary in cash @20000 pm, so which itr i have to fill and how. plz it is urgent

  29. PARV says:

    THE DOCTOR SHOULD USE ITR 4 WHETHER HE OPERATE THE CLINIC FROM RESIDENCE OR ELSEWHER.

  30. PARV says:

    TO SREE DEVI:- PRESUMPTIVE INCOME U/S 44AD FOR HEAVY GOODS VEHICLE WILL BE 5000 FROM AY 2011-12, UPTO AY 2010-11 THERE WAS 3500/- TO BE SHWON PER VEHICLE PER MONTH

  31. V K Varma says:

    What income tax form will a doctor use who carries out his practice from his residence

  32. sreedevi says:

    what is the presumptive income of heavy good vehicle rs.5000 or rs.3500

  33. DAVID says:

    There is a partnership firm and is engaged in Transportation activity on hire and billing done. Is this firm eligiable for presumptive taxation as per section 44AD. Pl guide.

  34. NIDHI says:

    I would like to confirm that if Net profit of a businessman is less than 8% and his sales are also less than 60 lacs. But his profit is less than maximum exemption limit, whether he is required to conduct tax audit of his accounts.

  35. CA Santosh Amte says:

    as per provisions of section 44 AE it is clear that assessee is not required to maintain Books of A/cs so ITO is not authorised to ask about Books of A/c but for the purpose of ehther the limit mentioned in section 44 AE ie 60 lacs deposited in to saving a/c then this section has not any Relevance . so as per the explanation given in said comment communicate the provisions of sec 44 AE to ur ITO .

    Regards

    CA Santosh Amte
    9403585213/ 9923103382

  36. SANTLAL PATEL says:

    MY CASE IS OPEN FOR SCRUTINY ON THE BASIS OF CASS FOR CASH DEPOSIT INTO A BANK ACCOUNT. I HAD TWO TRUCKS & THE RETURN FILED U/S 44AE I AM ALSO PARTNERSHIP FIRM WHERE I GOT THE REMUNERATION & INTEREST. WHILE FILING THE RETURN I HAD SHOWN BOTH THE INCOME i.e SHRE IN PROFIT OF THE FIRM & U/S 44AE.
    MY QUESTION IS WHETHER THE ASSESSING OFFICER ASK ME TO FURNISH THE BOOKS OF ACCOUNT, DETAILS OF MY BANK ACCOUNT & SOURCES OF CASH DEPOSITED INTO BANK.

  37. Shilpa says:

    Section 44AF – Business of retail trading of goods
    (Applicable till A.Y. 2010-11, this section will become inoperative from AY 2011-12 and the retail traders can choose to be governed by section 44AD from A.Y. 2011-12 which requires presumptive income at 8% of gross receipts/turnover)

    1] Applies to:
    Any person engaged in the business of retail trade in any goods or merchandise shall be covered by this provision. If his turnover from the above business do not exceed Rs. 40 lakhs.

    Is it 40 Lakhs or 60 Lakhs for AY 2011-12 ?

  38. Rustom says:

    If the turnover exceeds the limit in 44AB for Fy2010-11, and the business is that specified in 44AE. Is the Audit applicable??? Is it allowed to estimate the income on presumptive basis of 44AE??
    Please give your answer with reasonable reason

  39. Savio Zuzarte says:

    I would like to confirm the term “Total Income” u/s 44AD. Under Sub Section 5, if the profits declared is less than 8% AND total income exceeds the maximum limit, than audit is required. My Question is if Business Loss is Rs. 20,000 and Income from Other Sources is Rs. 1,90,000, What will be the TOTAL INCOME of that person and whether he has to go for AUDIT?

  40. advocate veeresh says:

    44AD of IT is applicable to whosale traders

  41. CWA Ritesh says:

    hi
    veeresh

    44 of IT act is related to insurance business only
    44AF is related to retail business only B.code 0202

  42. veeresh says:

    44AF of IT is applicable to wholesale business

  43. veeresh says:

    44 af Of IT is applicable to wholesale business

  44. Harish Bansal says:

    Since it is clearly specified through your bank accounts that you have earned 18 lakh Rs during the P/Y 10-11, i suppose you should show your income as same as is your bank account. On the other hand, since law has specified that if assessee voluntarily wants to assess more income than the presumptive taxation as in your case 8% of rs. 50 lakh i.e. Rs. 4 lacs, assessee could show. The word voluntarily has been used. So untill you are covered in assessment by the department, you can show your income equal to presumptive income.

  45. Anandkumar says:

    Section starts with wording Notwithstanding anything to the contrary contained in sections 28 to 43C and states that PGBP is deemed to profit calculated as per section 44AE. therefore all the expenses are deemed to have been allowed and hence no question of Depreciation allowance under section 32

  46. turnover of assessee for FY 2010-11 (AY 2011-12) = Rs 50lakhs,, actual profits = Rs 18lakhs which is reflected in bank accounts,, however assessee wants declare income as per 44AD (8%) ,, can he do so??

  47. HARENDRA KR GUPTA says:

    what is applicable depreciation u/s 44AE, if yes, pls sent computaion and no than same

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