Article discusses about Meaning of presumptive taxation scheme, Presumptive Taxation Scheme of Section 44ADSection 44ADA, Section 44AE, For whom the presumptive taxation scheme of is designed?, Businesses not covered under the presumptive taxation scheme, No need to maintain books of account as prescribed under section 44AA, Eligible taxpayer and eligible business for the purpose of the presumptive taxation scheme.

TAX ON PRESUMPTIVE BASIS IN CASE OF CERTAIN ELIGIBLE
BUSINESSES OR PROFESSIONS

To give relief to small taxpayers from the tedious job of maintenance of books of account and from getting the accounts audited, the Income-tax Act has framed the presumptive taxation scheme under sections 44AD, section 44ADA and section 44AE. In this part you can gain knowledge about various provisions of the presumptive taxation scheme of section 44AD, section 44ADA and section 44AE.

Meaning of presumptive taxation scheme

As per the Income-tax Act, a person engaged in business or profession 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 Act has framed the presumptive taxation scheme under sections 44AD, 44ADA 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.

Meaning of presumptive taxation scheme

For small taxpayers the Income-tax Act has framed two presumptive taxation schemes as given below:

     1. The presumptive taxation scheme of section 44AD.

2. The presumptive taxation scheme of section 44ADA.

3. The presumptive taxation scheme of section 44AE.

Presumptive Taxation Scheme of Section 44AD

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 of goods carriages referred to in section 44AE).

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).

This scheme cannot be adopted by a person who has made any claim towards deductions under section 10A/10AA/10B/10BA or under sections 801111 to 80RRB in the relevant year

Businesses not covered under the presumptive taxation scheme of section 44AD

The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses:

  • Business of plying, hiring or leasing of goods carriages referred to in section 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.

An insurance agent cannot 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.

A person engaged in a profession as prescribed under section 44AA(1) cannot 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.

A person whose total turnover or gross receipts for the year exceed Rs. 2,00,00,000 cannot 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 Rs. 2,00,00,000. In other words, if the total turnover or gross receipt of the business exceeds Rs. 2,00,00,000 then the scheme of section 44AD cannot be adopted.

Manner of computation of taxable business income under the normal provisions of the Income-tax Act, i.e., in case of a person not adopting the presumptive taxation scheme of section 44AD

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

Particulars

 Amount

Turnover or gross receipts from the businessXXXXX
Less : Expenses incurred in relation to earning of the incomeXXXXX
Taxable Business IncomeXXXXX

 Manner of computation of taxable business income under the normal provisions of the Income-tax Act, i.e., in case of a person not adopting the presumptive taxation scheme of section 44AD

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

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 earlier (i.e., Turnover less Expenses) but will be computed @ 8% of the turnover.

The manner of computation of taxable business income in case of a person adopting the presumptive taxation scheme of section 44AD

Income at higher rate, i.e., higher than 8% can be declared if the actual income is higher than 8%.

The presumptive income computed @ 8% is the final income and no further expenses will be allowed or disallowed

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

In case of a person who is opting for the presumptive taxation scheme of section 44AD, the provisions of allowance/disallowances as provided for under the Income-tax Act 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.

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.

No need to maintain books of account as prescribed under 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 for under section 44AA in respect of business covered under the presumptive taxation scheme of section 44AD.

Payment of advance tax in respect of income from business covered under section 44AD

Any person opting for the presumptive taxation scheme under section 44AD is liable to pay whole amount of advance tax on or before 1 5thMarch of the previous year. If he fails to pay the advance tax by 15th March of previous year, he shall be liable to pay interest as per section 234C.

Note: Any amount paid by way of advance tax on or before 31st day of March shall also be treated as advance tax paid during the financial year ending on that day.

Provisions to be applied if a person does not opt for the presumptive taxation scheme of section 44AD and declares income at a lower rate, i.e., at less than 8%

A person can declare income at lower rate (i.e., at 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 as per section 44AB.

Consequences if a person opts out from the presumptive taxation scheme of section 44AD

If a person opts for presumptive taxation scheme then he is also require to follow the same scheme for next 5 years. If he failed to do so, then presumptive taxation scheme will not be available for him for next 5 years. [For example, an assessee claims to be taxed on presumptive basis under Section 44AD for AY 2017-18. For AY 2018-19 and 2019-20 and he offers income on basis of presumptive taxation scheme. However, for AY 2020-2 1, he did not opt for presumptive taxation Scheme. In this case, he will not be eligible to claim benefit of presumptive taxation scheme for next five AYs, i.e. from AY 202 1-22 to 2025-26.]

Further, he is required to keep and maintain books of account and he is also liable for tax audit as per section 44AB from the AY in which he opts out from the presumptive taxation scheme. [If his total income exceeds maximum amount not chargeable to tax]

Presumptive Taxation Scheme of Section 44ADA

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

The presumptive taxation scheme of section 44ADA is designed to give relief to small taxpayers engaged in specified profession.

Eligible persons who can take advantage of the presumptive taxation scheme of section 44ADA

A person resident in India engaged in following professions can take advantage of presumptive taxation scheme of section 44ADA:-

1) Legal

2) Medical

3) Engineering or architectural

4) Accountancy

5) Technical consultancy

6) Interior decoration

7) Any other profession as notified by CBDT

Manner of computation of taxable income in case of a person adopting the presumptive taxation scheme of section 44ADA

In case of a person adopting the provisions of section 44ADA, income will be computed on presumptive basis, i.e. @ 50% of the total gross receipts of the profession. However such person can declare income higher than 50%.

In other words, in case of a person adopting the provisions of section 44ADA, income will not be computed in normal manner but will be computed @50% of the gross receipts.

The presumptive income computed @ 50% is the final income and no further expenses will be allowed

A person who adopts the presumptive taxation scheme is deemed to have claimed all deduction of expenses. Any further claim of deduction is not allowed after declaring profit @ 50%.

While computing income as per the provisions of section 44ADA, 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.

Payment of advance tax in respect of income from professions covered under section 44ADA

A person opting for the presumptive taxation scheme of section 44ADA is also liable to pay advance tax.

Maintenance of books of account if a person opts for presumptive taxation scheme of section 44ADA

In case of a person engaged in a specified profession as referred in section 44AA(1) and opts for presumptive taxation scheme of section 44ADA, the provision of section 44AA relating to maintenance of books of account will not apply. In other words, if a person opt for the provisions of section 44ADA and declares income @50% of the gross receipts, then he is not required to maintain the books of account in respect of specified profession.

Provisions to be applied if a person does not opt for the presumptive taxation scheme of section 44ADA and declares his income from profession at lower rate (i.e. less than 50%)

A person can declare income at lower rate (i.e. less than 50%), 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 as per section 44AB.

Presumptive Taxation Scheme of Section 44AE

Applicability of the presumptive taxation scheme of section 44AE

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

Eligible taxpayer and eligible business for the purpose of the presumptive taxation scheme of section 44AE

The provisions of section 44AE are applicable to every person (i.e., an individual, HUF, firm, company, etc.).

The presumptive taxation scheme of section 44AE can be adopted by a person who is engaged in the business of plying, hiring or leasing of goods carriages and who does not own more than 10 goods vehicles at any time during the year.

A person who owns more than 10 goods vehicles cannot adopt the presumptive taxation scheme of section 44AE

The presumptive taxation scheme of section 44AE can be adopted by a person who is engaged in the business of plying, hiring or leasing of 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 on 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.

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 section 44AE, income will be computed on an estimated basis.

Income will be computed @ Rs. 7,500 per month or part thereof during which the goods vehicle is owned by the taxpayer during the year. Part of the month would be considered as full month.

Note: If the actual income is higher than the presumptive rate, i.e., higher than Rs. 7,500, then such higher income can be declared.

Illustration

Mr. Khush is engaged in the business of plying, hiring or leasing of goods carriage. Throughout the year 2015-16 he owned 9 goods vehicles (5 heavy goods vehicles and 4 other than heavy goods vehicles). What will be the taxable income from the business of plying, hiring or leasing of goods carriages if he adopts the provisions of section 44AE?

**

As per the provisions of section 44AE,income will be computed @ Rs. 7,500 per month or part thereof during which the goods vehicle is owned by the taxpayer. The rate of Rs. 7,500 per month is same for every goods vehicle.

In the present case, Mr. Khush owned 9 goods vehicles throughout the year and, hence, income will be computed as follows:

Particulars Amount (Rs.)
Income per month per goods vehicle7,500
(×) No. of goods vehicle9
Monthly income as per the provisions of sections 44AE from 9 goods vehicle67,500
(×) No. of months in the year during which the vehicles were owned12
Total income from business of plying, hiring or leasing goods carriages as per the provisions of sections 44AE8,10,000

The presumptive income computed at the rate of Rs. 7,500 per goods vehicle per month is the final income and no further expenses will be allowed or disallowed

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

In case of a person who is opting for the presumptive taxation scheme of section 44AE, the provisions of allowance/disallowances as provided for under the Income-tax Act, will not apply and income computed at the presumptive rate of Rs. 7,500 per goods vehicle per month will be the final income. In other words, the income computed at the rate of Rs. 7,500 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. 7,500 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 Act).

While computing income as per the provisions of section 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.

No need to maintain books of account as prescribed under 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/profession according to the provisions of section 44AA.

No need to maintain books of account as prescribed under 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. 7,500 per goods vehicle per month, then he is not required to maintain the books of account as provided for under section 44AA in respect of business covered under the presumptive taxation scheme of section 44AE.

Applicability of the provisions relating to payment of advance tax

There is no concession as regards payment of advance tax in case of a person who adopts 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.

Provisions to be applied if a person does not opt for the presumptive taxation scheme of section 44AE and declares income at a lower rate, i.e., at less than Rs. 7,500 per goods vehicle per month

A person can declare his income at lower rate (i.e., at less than Rs. 7,500 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 4AB

Republished with amendment.

More Under Income Tax

Posted Under

Category : Income Tax (23287)
Type : Articles (11299) Featured (3778)
Tags : FAQs (203) Income Tax Tips (73) Section 44AD (94)

77 responses to “Presumptive taxation U/s. 44AD, 44ADA, 44AE with FAQs”

  1. Karan says:

    Can a Partnership firm providing Consulting services (Software Professional) opt in for 44AD and declare 8% profit or do they need to declare 50% based on 44ADA

    Can someone please inform me.
    Thank you

  2. Naresh Bansal says:

    Can a partnership-firm that provides Software Development Services with annual revenue less than 10Lac avail benefit of sec 44AD?

  3. Sajjan says:

    one of my freind own 10 vehicle and Two vehicle get on rent from another person for his business use. can he file his return U/S 44AE ???

  4. Mh Ranganatha says:

    I having Small Photo copy ( Xerox) Business , which income not more then 50000/ year which ITR to be filled up

  5. Buddhadeb Das says:

    In 4S shown 44AE shown as a contractor as well as Total Gross receipt u/s 44AD and >8% profit ,is it wrong-return already filed under A.Y.2014-15,2015-16,please give me guide line

  6. Aashish Chhajer says:

    Hello Sir,
    I have a question with respect to Section 44AD, if a person has income from more than 2 source (let say Speculation & F&O & Trading of goods which are taxable under head PGBP only & whose aggregate turnover is less than 1 Crore in total, then can they claim presumptive income for above said sources of income together or 44AD restricts it to only one source of income under head PGBP…?? in case of any other, then please bring it in to effect as well. Thanks & regards.

  7. Imi Chand Poonia, Advocate says:

    my Gross turnover Ay 2015-16 from contractor business Rs 95 Lac,s and Five truck recipts 8 Lac,s As per 26 As. But i want return submitted Contractor Recipts 44 AD as per 8% & truck recipts 44 AE . I want Not Audit my Account

  8. Singrauli says:

    If income shown u/s 44AE for 5 trucks @ Rs 90000/- per truck tot Rs 450000/- and in 26AS show gross payment without TDS Rs 5700000/- approx than how will filled the return because last year same case notice recevied to assessee for that turnover shown in 26AS not matched with your ITR, so pls suggest that how can return filled

  9. braja lalDevnath says:

    If a person opt for 44AE, then no further depreciation is available is confirmed. But if a person does not opt this Sec,44AE but deducts depreciation from gross receipts and income is equivalent to sec.44AE. Will depreciation be disallowed?

  10. parag chitnis says:

    my turnover is below Rs.1 Cr and i have suffered loss of Rs.12 lacs due to depreciation. is it compulsory to get my accounts audited by CA.

  11. Prasad says:

    Dear Sirs,
    I am having commission from Lic and Post office. Can I file my return u/s 44AD.

  12. Prabhat says:

    Sir,
    I am a retired person having annual income from Pension Rs.375000/- (AY 2015-2016). I have also incurred business loss of Rs.25000 (through Futures and Options Trading and Commodity Futures Trading having turnover below Rs.1 crore) during this period. I am confused which Income Tax Return Form will be applicable to me.
    1. Though I have business activity with below Rs.1 crore turnover as above , along with salary income, but, I do not have any business income,as I have incurred business loss — so, whether I can file
    ITR – 1 ?.
    2. Or, else if I file ITR IV-S showing my business turnover with a loss as stated above, whether yet,I have to pay minimum presumptive tax @% under Section 44AD ?
    3. In case,not 1 or 2 as stated above, whether I have to file ITR IV ? But, in that case, even though I have incurred a business loss, whether I have to get my above business transaction Audited, as per existing Income Tax Rule ?
    Kindly guide me ,

  13. Shrinivas says:

    My income from insurance commission is Rs.56000. TDS @ 10% has been deducted form it.Income from other sources is Rs.70000. Should I use ITR 4 or ITR 4S to claim the TDS deducted.

  14. sanjay maheshwari says:

    Res. Sir,

    Please note,I seen Your Valuable note for the Prov. for filling ITR in the case of Business income and Losses and wish to have Your valuable opinion .

    Please support me and give me Your Valuable advice and opinion on my matter i.e

    I had in Future and Option i.e in shares Derivatives business had loss figure is Rs.9,50,000.00 and profit figure was Rs.419600.00,so the balance was Loss on Derivative business of Rs. 536400.00 ( 419600-956000)

    Long term Capital gain on sale -Buy Back of shares Hind Unilever of Rs 3,29,200.00,so cant be claimed Tax Free Long term Cap. Gain.

    and insurance Commission taken Rs.31,616.00 without maintaining the books.

    I filled the I.T. R on 31st July 2014 Loss Return and claimed –

    1) Profit and gains from from business and prof. RS. RS.

    —————————————————————— ————————— ————————-

    commission income without books 31,616.00

    Share Trading income LOSS – 5,36400.00

    – (5,04,784.00)

    2.) Capital Gains 3,29,200.00 3,29,200.00

    3.)Income from other Sources 5,640.00 5,640.00

    ————————————

    Total Income – ( 1,69,944.00 ) as UnAbsorbed Loss Carry forwarded

    Total Taxable income Nil

    TDS 5,609.00

    Refund 5,609.00

    I asked the same to my CA and a CA from Hyderabad who confirmed that I filled the ITR correct .

    Please confirm whether that the Filled ITR -4 is right

    kindly do guide and give Your Valuable advice. I will be highly obliged in getting Your Valuable opinion.

    Thanks,

    Best Regards,

    Sanjay Chandak

    Raipur

    Contact no.9300061575

  15. Arif says:

    Sir,
    Income from school van is taxable u/s 44ae ??

  16. Neeraj Thakur says:

    Sir I am having income for salary (psu) and I also developed website for some company but that company deducted tds under section 194J.
    I had spent money on development and maintanance of website so my net income is less than what I recieved.
    Please suggest which ITR form to file and can I avail benefit of sec 44AD by declaring 8 percent profit of my gross reciepts.
    PLEAE SUGGEST WHICH ITR FORM TO FILL . INCOME IS FROM BOTH SALARY AND PART TIME PROFESSION OF WEBSITE DEVELOPMENT.

  17. Akash Verma says:

    School Bus/Van to carry student to school whether he can file his return under 44AE treated as Presumptive Income…..

  18. LUCKY SANKHLA says:

    SIR,
    I HAVE ONE MAHENDRA TATA 407 WHAT AMOUNT CHARGE FOR MONTHALY CHARGE ? for AY2015-16

  19. C. Bujji Raju says:

    Dear sir,

    I am doing sweet oil business & my early income was 4 cr i am doing commission basis now i got 8LAc now what is my turnover & which section under income tax what is my profit ratio

  20. Pratibha Pareek says:

    Sir i want to know that whether its compulsory to prepare Profit n Loss A/C and Balance Sheets under income generating u/s 44AD???

  21. s.ravikumar says:

    44AE APPLILCABLITY IS HARVESTER MONTHY 5000/- INCOME FILE TO 44AE SEC PLS TELL ME SIR

  22. avdes says:

    My client is a Lorry Contractor he engages lorry on hire from the Owners and gives it on rent or contractors. Whcih section applies to him @ what % ??? Please Guide

  23. Ekansh says:

    will it be possible to cover income of music teacher (singer) u/s 44AD since it is not specified u/s 44AA

    • AMIYA GOPAL MUKHOPADHYAY says:

      My wife teaches as private tutor at home 1) monthly earning approx Rs.6000/-, 2) Annual Interest from Fixed Deposits around Rs.90000/- . If she wants to file ITR which ITR form she will select ?

  24. sayyid says:

    can anyone tell? if the income is declared as per section 44ad, whether it is required to take interest income in income from other source of a firm

  25. Rameshwar Prasad says:

    Dear Sir,
    I am starting a business of lending Heavy Vehicles on rent to a private ltd company. Rent of one vehicles will be more than one lakh per month and they need 20 vehicles. i don’t have 20 vehicles so i will hire the vehicle from other and lend them to the company so please tell me what type of registration is required in this business and what will be the tax libility if i do it individual.

    thanks

  26. A.V.DWARAGANATH says:

    SIR,

    MY CLIENTS HAVING 2 OMNI BUSES AND GET COLLELCTION IS BELOW RS. 1CR. WHICH SECTION APPLICABLE i.e., 44AD OR 44AE. PLEASE EXPLAIN?

  27. Mohammad Nadeem Hashmi says:

    Mr.prabhakar says, You strictly prohibited claimed any expenditue, If you opted 44AD

  28. Sudipto Choudhury says:

    I develop web sites and software for multiple clients in India and abroad. I am not employed full time to any of them. My income for the year would be ~ 10L. So, can I opt for presumptive Income as per 44AD stating 8% of total receipt?

    I think situation is similar to to ajinkya modak below to whom you said it is possible. However, I am not able to understand this part: “u have to show other profit as unsecured loan and lower amt as a gift from persons”. Can you please explain more on this part?

  29. 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

  30. 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.

  31. pankaj says:

    Dear sir,,

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

  32. 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

  33. kumar says:

    Can you please tell is there any exemption for website income

  34. D.K.KRISHNE GOWDA says:

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

  35. 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 ?

  36. 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

  37. 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.

  38. 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.

  39. 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.

  40. 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

  41. 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 ….

  42. shridhar says:

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

  43. 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 ?

  44. chandan says:

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

  45. 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

  46. aasif says:

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

  47. 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.

  48. 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

  49. 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.

  50. 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.

  51. 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 …

  52. 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?

  53. 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.

  54. jyoti says:

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

  55. PARTHA PRATIM MANDAL says:

    sec44AE ACT

  56. 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

  57. PARV says:

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

  58. 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

  59. V K Varma says:

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

  60. sreedevi says:

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

  61. 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.

  62. 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.

  63. 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.

    • 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

  64. 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 ?

  65. 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

  66. 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?

  67. advocate veeresh says:

    44AD of IT is applicable to whosale traders

  68. veeresh says:

    44AF of IT is applicable to wholesale business

  69. veeresh says:

    44 af Of IT is applicable to wholesale business

    • 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

  70. 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??

    • 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.

  71. HARENDRA KR GUPTA says:

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

    • 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

Leave a Reply

Your email address will not be published. Required fields are marked *

Search Posts by Date

December 2016
MTWTFSS
« Nov  
 1234
567891011
12131415161718
19202122232425
262728293031 
error: Alert: Content is protected !!