To give relief to small assesses, the Income-tax Law has incorporated a simple scheme commonly known as Presumptive Taxation Scheme. There are two schemes, viz., the scheme of section 44AD and the scheme of section 44AE. An assesses adopting these provisions is not required to maintain the regular books of account and is also exempt from getting the books of account audited. In this advance learning we will cover the provisions of the presumptive taxation scheme provided in section 44AD. The scheme of section 44AD is designed to give relief to small assesses engaged in any business (except the business of plying, hiring or leasing of goods carriages referred to in section 44AE). The detailed provisions in this regard are as follows:

Applicability of the scheme

The provisions of section 44AD are applicable to such resident assesses who is an Individual, Hindu Undivided Family and Partnership Firm but not Limited Liability Partnership Firm. Unlike section 44AE, in case of section 44AD there is a restriction on which categories of assessees can opt for the scheme. Only specific categories of resident assessees as discussed above can opt for this scheme.

Illustration

Essem Pvt. Ltd., a private limited company is engaged in the manufacturing business. In this case, even though if the company satisfies all the criteria for adopting the provisions of section 44AD, it cannot opt for presumptive taxation schemes of section 44AD since these provisions cannot be adopted by an assessees being a private limited company. In other words, the presumptive taxation scheme of section 44AD can be adopted only by a resident assessees who is an Individual, 11indu Undivided Family and Partnership Firm (not Limited Liability Partnership Firm).

Eligible business

The presumptive taxation scheme under these provisions can be opted for by the eligible assessees who is engaged in any business (except the business of plying, hiring or leasing goods carriages referred to in section 44AE), whose turnover or gross receipts from such business do not exceed the limit of audit prescribed under section 44AB (i.e., Rs. 60,00,000 for the previous year 2011-12 and Rs. 1,00,00,000 from the previous year 2012-13). Further, these provisions can be adopted by the assessees only if he has not claimed deduction under section 10A/10AA/10B/10BA or under sections 801111 to 80RRB in the relevant year.

Moreover, the provisions of section 44AD cannot be adopted by an assessees who is engaged in any profession as prescribed under section 44AA or is carrying on an agency business or is earning income in the nature of commission or brokerage.

The important criteria of the scheme is the turnover or gross receipts from the eligible business. To opt for the scheme the turnover should not exceed Rs. 1,00,00,000.

Illustration

Mr. Soham is running a provision shop. The turnover of the shop for the previous year 20 12- 13is Rs. 99,00,000. Can he adopt the provisions of presumptive scheme of section 44AD in respect of this business? **

The provisions of section 44AD can be adopted by the eligible assessees who is engaged in any business (except the business of plying, hiring or leasing of goods carriages referred to in section 44AE and except by the assessees who is engaged in any profession as prescribed under section 44AA or is running agency business or is earning income in the nature of commission or brokerage).

Further, turnover or gross receipts from such business should not exceed the limit of audit prescribed under section 44AB (i.e.,Rs. 1,00,00,000 for the previous year 2012-13). In this case Mr. Soham is running a provision shop whose turnover is Rs. 99,00,000 during the previous year 2012-13. Thus, he satisfied both the criteria of the scheme and, hence, he can adopt the provisions of section 44AD for his business of provision shop.

Scheme of computation of income

In case of an assessees who is willing to opt for these provisions, income will be computed on an estimated basis. The rate of computation of income on an estimated basis is 8% of turnover or gross receipts of the eligible business for the previous year.

Illustration

Mr. Shivam is a wholesale dealer of garments whose turnover during the previous year 2012-13 is Rs. 84,00,252. He wants to adopt the provisions of section 44AD in respect of this business. In this case what will be the income as per the provisions of section 44AD? ** As per the provisions of section 44AD, income will be computed on an estimated basis @ 8% of turnover or gross receipts of the eligible business for the previous year. In the present case Mr. Shivam is engaged in the business of wholesale dealership of garments whose turnover is Rs. 84,00,252 and, hence, his income as per the provisions of section 44AD will come to Rs. 6,72,020 (i.e, Rs. 84,00,252 * 8%).

Provisions relating to various allowances/dis allowances

Income computed as per section 44AD (i.e., @ 8% of turnover or gross receipts of the eligible business, for the previous year) will be net income for the business covered under this scheme.

From the net income computed as above, an assessees is not permitted to claim any deduction under sections 30 to 38 (including depreciation or unabsorbed depreciation).

Provisions in case of a partnership firm:

An assessees, being a partnership firm, can claim further deduction of remuneration and interest paid to its partners within the limit specified under section 40(b). In other words, in case of an assessees, being a partnership firm, separate deduction from the net income computed as per presumptive taxation scheme in respect of remuneration and interest paid to its partners is allowed.

Further, from income computed at the aforesaid rate, no dis allowance can be made under sections 40, 40A and 43B. Thus, in case of an assessees adopting the presumptive taxation scheme of section 44AD, no dis allowance under sections 40, 40A and 43B will apply.

Illustration

Mr. Shan is running a Bandhani Press. His gross receipts from this business during previous year 2012-13 is Rs. 84,25,250 and he declared income as per the provisions of section 44AD. After computing the income @ 8% of such gross receipts, he wants to claim further deduction on account of depreciation on the press building. Can he do so as per the provisions of section 44AD? ** As per the provisions of section 44AD, from the net income computed at the prescribed rate, i.e., @ 8% of turnover or gross receipts from the eligible business during the previous year, an assessees is not permitted to claim any deduction under sections 30 to 38 (including depreciation or unabsorbed depreciation) from such income. Thus, in this case Mr. Shan cannot claim any further deduction from the net income of Rs. 6,74,020,i.e., @ 8% of gross receipts of Rs. 84,25,250.

Illustration

Essem Corporation, a partnership firm, is engaged in the business of wall clock manufacturing and declared income as per the provisions of section 44AD during the previous year 2012-13. After computing the income @ 8%, the firm wants to claim further deduction on account of remuneration and interest paid to its partners within the limit specified under section 40(b). Can the firm do so as per the provisions of section 44AD? ** As per the provisions of section 44AD, from the net income computed at the prescribed rate, i.e., @ 8%, an assessee is not permitted to claim any deduction under sections 30 to 38 (including depreciation or unabsorbed depreciation) from such income. However, in case of an assessee, being a partnership firm, further deduction on account of remuneration and interest paid to its partners within the limit specified under section 40(b) is allowed. Thus, in this case the firm can claim further deduction on account of remuneration and interest paid to its partners within the limit specified under section 40(b).

Manner of computation of WDV of depreciable assets

As discussed above, an assessees opting for the presumptive taxation scheme is not permitted to claim deduction on account of various expenditures including depreciation. As regards the computation of the WDV of depreciable asset, following provision should be kept in mind:

Deduction on account of depreciation is not available. However, the WDV of any asset used in the business covered under the scheme of section 44AD shall be calculated as if depreciation as per section 32 is claimed and allowed. Thus, even though no depreciation is available separately, yet for purpose of computation of the WDV of the asset, depreciation will be deducted.

Illustration

SM Corporation, a partnership firm, engaged in the business of cement manufacturing declared income as per the provisions of section 44AD during the previous year 2012-13. After computing the income @ 8%, the partners of the firm were of the opinion that in computing the WDV of the factory building owned by them depreciation will not be deducted since no deduction on account of the same was claimed. Is the contention of partners correct? ** As per the provisions of section 44AD, from the income computed as per the provisions of section 44AD, further deduction on account of depreciation is not available. However, the WDV of any asset used in the business covered under the scheme of section 44AD shall be calculated as if depreciation as per section 32 is claimed and allowed. Thus, the contention of the partners is not correct. Even though no depreciation is claimed by the firm, yet for purpose of computation of the WDV of the asset, depreciation will be deducted from the value of the block.

Provisions relating to maintenance of books of account

The scheme gives a great relief to the assesses in respect of maintenance of books of account. An assesses, who adopts the provisions of section 44AD, is not required to maintain books of account as per section 44AA (applicable only for business covered by this section). Further, in respect of such business, the provisions of section 44AB (relating to audit) are also not applicable. Thus, the scheme relieves the assessee from the maintenance of regular books of account. Apart from giving relief from maintenance of books of account, the scheme also relieves the assessee from audit of books of account.

Illustration

Mr. Sipahi is running a medical store. The turnover of the business during the previous year 2012-13 is Rs. 25,84,252 and he declared income as per the provisions of section 44AD. In this case will he be liable to maintain the books of account in respect of aforesaid business? ** As per the provisions of section 44AD, an assessee who adopts the provisions of section 44AD, is not required to maintain books of account as per section 44AA. However, the relief is available only in respect of business covered by the provisions of section 44AD and not in respect of any other business. Thus, if Mr. Sipahi owns any other business, then in respect of such other business the provisions of section 44AA in respect of maintenance of books of account will apply.

Declaration of lower income

If the actual income from the business covered under section 44AD is lower than the income prescribed under the presumptive scheme, then the assesses can declare income from aforesaid business at a lower rate (i.e., at less than 8%).

If the asses see does so, i.e., declares lower income and his actual income exceeds the maximum amount which is not chargeable to tax, then the relief from maintenance of books of account is not available and he is required to maintain the books of account as per section 44AA and further, he has to get such books of account audited as per section 44AB.

Illustration

Mr. Sashank is running a stationary mart. The turnover of the business during the previous year 2012-13 is Rs. 84,48,252. His actual income from this business is only Rs. 5,52,848 which is less than Rs. 6,75,860 (i.e., Rs. 84,48,252 * 8%). In this case can he declare actual income which is lower than the limit prescribed under section 44AD? ** As per the provisions of section 44AD, if the actual income from the business covered under section 44AD is lower than the income prescribed under the presumptive scheme, then the assessee can declare income from aforesaid business at a lower rate (i.e., at less than 8%). Thus, in this case Mr. Sashank can declare lower income. However, in this case he has to maintain the books of account prescribed under section 44AA and has to get such books of account audited, since in this case his actual income exceeds the exemption limit (i.e., Rs. 2,00,000).

Declaration of higher income

As regards the declaration of higher income, i.e., declaring income above the prescribed rate of 8%, the scheme permits the assessee to declare at his option higher income (i.e., higher than 8%).

Illustration

Mr. Saurabh is running a provision shop and the gross receipt of the business during the previous year 2012-13 is Rs. 24,48,252. His actual income is Rs. 2,84,848 which is higher than Rs. 1,95,860 (i.e., 8% * Rs. 24,48,252). In this case can he declare the actual income which is higher than the limit prescribed under section 44AD? ** As per the provisions of section 44AD, if the actual income from the business covered under section 44AD is higher than the income prescribed under the presumptive scheme, then the assesses has to declare such higher income from aforesaid business. Thus, in this case Mr. Saurabh can declare higher income.

Applicability of Provisions of Advance Tax

An assesses opting for the presumptive taxation scheme of section 44AD will not be liable to pay advance tax in respect of business covered under section 44AD. In other words, a person adopting the provisions of presumptive taxation scheme of section 44AD is not liable to pay advance tax in respect of the business covered under section 44AD.

Illustration

Mr. Saurabh is running a provision shop. The gross receipts of the shop for the previous year 2012-13 amounted to Rs. 54,48,252. He adopted the provisions of section 44AD and declared income @ 8% of the turnover.. Apart from income from provisions shop, he also earned commission of Rs. 4,52,848. In this case, he will not be liable to pay advance tax in respect of income from provisions shop even though the tax liability in respect of income from shop exceeds Rs. 10,000. However, as regards commission income, he will be liable to pay advance tax since the tax liability on commission income exceeds Rs. 10,000.

FAQs

1. Who can adopt the presumptive taxation scheme as provided in section 44AD?

The provisions of section 44AD are applicable to such resident assesses who is an Individual, 11indu Undivided Family and Partnership Firm but not Limited Liability Partnership Firm.

Unlike section 44AE, in case of section 44AD there is a restriction on which categories of assessees can opt for the scheme. Only specific categories of resident assessees as discussed above can opt for this scheme.

Illustration

Essem Pvt. Ltd., a private limited company is engaged in the manufacturing business. In this case, even though if the company satisfies all the criteria for adopting the provisions of section 44AD, it cannot opt for presumptive taxation schemes of section 44AD since these provisions cannot be adopted by an assesses being a private limited company. In other words, the presumptive taxation scheme of section 44AD can be adopted only by a resident assesses who is an Individual, 11indu Undivided Family and Partnership Firm (not Limited Liability Partnership Firm).

2. What is the eligible business as provided in section 44AD?

The presumptive taxation scheme under these provisions can be opted for by the eligible assesses who is engaged in any business (except the business of plying, hiring or leasing goods carriages referred to in section 44AE), whose turnover or gross receipts from such business do not exceed the limit of audit prescribed under section 44AB (i.e., Rs. 60,00,000 for the previous year 2011-12 and Rs. 1,00,00,000 from the previous year 2012-13). Further, these provisions can be adopted by the assesses only if he has not claimed deduction under section 10A/10AA/10B/10BA or under sections 801111 to 80RRB in the relevant year.

Moreover, the provisions of section 44AD cannot be adopted by an assesses who is engaged in any profession as prescribed under section 44AA or is carrying on an agency business or is earning income in the nature of commission or brokerage.

The important criteria in the scheme is the turnover or gross receipts from the eligible business. To opt for the scheme, the turnover should not exceed Rs. 1,00,00,000.

Illustration

Mr. Soham is running a provision shop. The turnover of the shop for the previous year 2012-13 is Rs. 99,00,000. Can he adopt the provisions of presumptive scheme of section 44AD in respect of this business? ** The provisions of section 44AD can be adopted by the eligible assesses who is engaged in any business (except the business of plying, hiring or leasing goods carriages referred to in section 44AE and except by the assesses who is engaged in any profession as prescribed under section 44AA or is running agency business or is earning income in the nature of commission or brokerage).

Further, turnover or gross receipts from such business should not exceed the limit of audit prescribed under section 44AB (i.e., Rs. 1,00,00,000 for the previous year 2012-13). In this case Mr. Soham is running a provision shop whose turnover is Rs. 99,00,000 during the previous year 2012-13. Thus, he satisfied both the criteria of the scheme and hence, he can adopt the provisions of section 44AD for his business of provision shop.

3. What is the manner of computation of income under the presumptive taxation scheme as provided in section 44AD?

In case of an assesses who is willing to opt for these provisions, income will be computed on an estimated basis. The rate of computation of income on an estimated basis is 8% of turnover or gross receipts of the eligible business, for the previous year.

Illustration

Mr. Shivam is a wholesale dealer of garments whose turnover during the previous year 2012-13 is Rs. 84,00,252. He wants to adopt the provisions of section 44AD in respect of this business. In this case what will be the income as per the provisions of section 44AD?

** As per the provisions of section 44AD, income will be computed on an estimated basis @ 8% of turnover or gross receipts of the eligible business, for the previous year. In the present case Mr. Shivam is engaged in the business of wholesale dealership of garments whose turnover is Rs. 84,00,252 and hence, his income as per the provisions of section 44AD will come to Rs. 6,72,020 (i.e. Rs. 84,00,252 * 8%).

4. What are the provisions relating to various allowances/dis allowances in case of an assessees adopting the presumptive taxation scheme as provided in section 44AD?

Income computed as per section 44AD (i.e., @ 8% of turnover or gross receipts of the eligible business, for the previous year) will be net income for the business covered under this scheme.

From the net income computed as above, an assesses is not permitted to claim any deduction under sections 30 to 38 (including depreciation or unabsorbed depreciation).

Provisions in case of a partnership firm:

It should be noted that an assesses, being a partnership firm, can claim further deduction of remuneration and interest paid to its partners within the limit specified under section 40(b). In other words, in case of an assesses being a partnership firm, separate deduction from the net income computed as per presumptive taxation scheme in respect of remuneration and interest paid to its partners is allowed.

Further, from income computed at the aforesaid rate, no dis allowance can be made under sections 40, 40A and 43B. Thus, in case of an assesses adopting the presumptive taxation scheme of section 44AD, no dis allowance under sections 40, 40A and 43B will apply.

Illustration

Mr. Shan is running a Bandhani Press. His gross receipts from this business during previous year 2012-13 is Rs. 84,25,250 and declared income as per the provisions of section 44AD. After computing the income @ 8% of such gross receipts, he wants to claim further deduction on account of depreciation on the press building. Can he do so as per the provisions of section 44AD?

** As per the provisions of section 44AD, from the net income computed at the prescribed rate, i.e., @ 8% of turnover or gross receipts from the eligible business during the previous year, an assesses is not permitted to claim any deduction under sections 30 to 38 (including depreciation or unabsorbed depreciation) from such income. Thus, in this case Mr. Shan cannot claim any further deduction from the net income of Rs. 6,74,020 i.e., @ 8% of gross receipts of Rs. 84,25,250.

Illustration

Essem Corporation, a partnership firm is engaged in the business of wall clock manufacturing and declared income as per the provisions of section 44AD during the previous year 2012-13. After computing the income @ 8%, the firm wants to claim further deduction on account of remuneration and interest paid to its partners within the limit specified under section 40(b). Can the firm do so as per the provisions of section 44AD?

** As per the provisions of section 44AD, from the net income computed at the prescribed rate, i.e., @ 8%, an assessee is not permitted to claim any deduction under sections 30 to 38 (including depreciation or unabsorbed depreciation) from such income. However, in case of an assessee, being a partnership firm, further deduction on account of remuneration and interest paid to its partners within the limit specified under section 40(b) is allowed. Thus, in this case the firm can claim further deduction on account of remuneration and interest paid to its partners within the limit specified under section 40(b).

5. What is the manner of computation of WDV of depreciable assets in case of an assesses who is adopting the presumptive taxation scheme as provided in section 44AD?

As discussed above, an assesses opting for the presumptive taxation scheme is not permitted to claim deduction on account of various expenditures including depreciation. In this context, as regards the computation of the WDV of depreciable asset, following provision should be kept in mind: Deduction on account of depreciation is not available. However, the WDV of any asset used in the business covered under the scheme of section 44AD shall be calculated as if depreciation as per section 32 is claimed and allowed. Thus, even though no depreciation is available separately, yet for purpose of computation of the WDV of the asset, depreciation will be deducted.

Illustration

SM Corporation, a partnership firm is engaged in the business of cement manufacturing and declared income as per the provisions of section 44AD during the previous year 2012-13. After computing the income @ 8%, the partners of the firm is of the opinion that in computing the WDV of the factory building owned by them depreciation will not be deducted since no deduction on account of the same is claimed. Is the contention of partners correct?

** As per the provisions of section 44AD, from the income computed as per the provisions of section 44AD, further deduction on account of depreciation is not available. However, the WDV of any asset used in the business covered under the scheme of section 44AD shall be calculated as if depreciation as per section 32 is claimed and allowed. Thus, the contention of the partners is not correct. Even though no depreciation is claimed by the firm, yet for purpose of computation of the WDV of the asset, depreciation will be deducted from the value of the block.

6. What are the provisions relating to maintenance of books of account in case of an assesses who is adopting the presumptive taxation scheme as provided in section 44AD?

The scheme gives a great relief to the assesses in respect of maintenance of books of account. An assesses, who adopts the provisions of section 44AD, is not required to maintain books of account as per section 44AA (applicable only for business covered by this section). Further, in respect of such business, the provisions of section 44AB (relating to audit) are also not applicable.

Thus, the scheme relieves the assesses from the maintenance of regular books of account. Apart from giving relief from maintenance of books of account, the scheme also relieves the assesses from audit of books of account.

Illustration

Mr. Sipahi is running a medical store. The turnover of this business during the previous year 2012-13 is Rs. 25,84,252 and declared income as per the provisions of section 44AD. In this case will he be liable to maintain the books of account in respect of aforesaid business?

** As per the provisions of section 44AD, an assessee who adopts the provisions of section 44AD, is not required to maintain books of account as per section 44AA. However, it should be noted that the relief is available only in respect of business covered by the provisions of section 44AD and not in respect of any other business. Thus, if Mr. Sipahi owns any other business, then in respect of such other business the provisions of section 44AA in respect of maintenance of books of account will apply.

7. Can an assesses adopting the presumptive taxation scheme as provided in section 44AD declare lower income?

If the actual income from the business covered under section 44AD is lower than the income prescribed under the presumptive scheme, then the assesses can declare income from aforesaid business at a lower rate (i.e., at less than 8%).

If the assesses does so, i.e. declares lower income and his actual income exceeds the maximum amount which is not chargeable to tax, then the relief from maintenance of books of account is not available and he is required to maintain the books of account as per section 44AA and further, he has to get such books of account audited as per section 44AB.

Illustration

Mr. Sashank is running a stationary mart. The turnover of the business during the previous year 2012-13 is Rs. 84,48,252. His actual income from this business is only Rs. 5,52,848 which is less than Rs. 6,75,860 (i.e., Rs. 84,48,252 * 8%). In this case can he declare actual income which is lower than the limit prescribed under section 44AD? ** As per the provisions of section 44AD, if the actual income from the business covered under section 44AD is lower than the income prescribed under the presumptive scheme, then the assessee can declare income from aforesaid business at a lower rate (i.e., at less than 8%). Thus, in this case Mr. Sashank can declare lower income. However, in this case he has to maintain the books of account prescribed under section 44AA and has to get such books of account audited as his actual income exceeds the exemption limit (i.e., Rs. 2,00,000).

8. Can an assesses adopting the presumptive taxation scheme as provided in section 44AD declare higher income?

As regards the declaration of higher income, i.e. declaring income above the prescribed rate of 8%, the scheme permits the assesses to declare at his option higher income (i.e., higher than 8%).

Illustration

Mr. Saurabh is the proprietor of provision shop and the gross receipts of this business during the previous year 2012-13 is Rs. 24,48,252. But his actual income is Rs. 2,84,848 which is higher than Rs. 1,95,860 (i.e., 8% * Rs. 24,48,252). In this case can he declare income above the limit prescribed under section 44AD?

** As per the provisions of section 44AD, if the actual income from the business covered under section 44AD is higher than the income prescribed under the presumptive scheme, then the assesses has to declare such higher income from aforesaid business. Thus, in this case Mr. Saurabh can declare higher income.

9. What are the provisions relating to payment of advance tax in case of an assesses who is adopting the presumptive taxation scheme as provided in section 44AD?

An assesses opting for the presumptive taxation scheme of section 44AD will not be liable to pay advance tax in respect of business covered under section 44AD. In other words, a person adopting the provisions of presumptive taxation scheme of section 44AD is not liable to pay advance tax in respect of the business covered under section 44AD.

Illustration

Mr. Saurabh is running a provision shop. The gross receipts of the shop for the previous year 2012-13 amounted to Rs. 54,48,252. He adopted the provisions of section 44AD and declared income @ 8% of the turnover.. Apart from income from provisions shop, he also earned commission of Rs. 4,52,848.

In this case, he will not be liable to pay advance tax in respect of income from provisions shop even though the tax liability in respect of income from shop exceeds Rs. 10,000. However, as regards commission income, he will be liable to pay advance tax since the tax liability on commission income exceeds Rs. 10,000.

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Tags : Section 44AD (120) section 44AE (8)

22 responses to “All about Section 44AD of Income Tax Act, 1961”

  1. sahprashant says:

    sir i am insurance agent and receive commission and i also run a small business, both this income i want to show in my ITR, i just wanted to know which return i should for the AY 2017-18, ITR-4S or ITR-3, Plz help

  2. ANIL KUMAR GUPTA says:

    i m n insurance agent and do the return o 4S IN AY-2016-2017, FOR U/S 44AD INCOME IS GROSS RECEIPTS -750,458, PRES. INCOME IS 390,880 BUT IT DEPT SEND DEFECTIVE U/S 139(9), SO PL SEND WHAT CAN I DO

  3. R. SRINIVASAN says:

    I did intraday trading in equity and F&O during f.y. 2014-15(a.y.2015-16) and incurred a loss of 8.5 lakhs. However, I have not shown this in my Return since I was not planning to continue the trading to offset the losses in future years. Now I am asked to come for scrutiny. What is the tax applicability. ITO says that gross turnover(both losses and gains) should be added and 8% of the total value will be deemed as profit. On this I have to pay 30% tax. Is this correct? He quotes SEc. 44AD. Kindly advise me. Your valuable inputs will help me to a great extent.

  4. Monika says:

    income u/s 44ad 200000(8% of turnover) is sec 44aa applicable on it??

  5. Vijay says:

    Sir, I am and PSU employee. After demise of my father I received ancestral agricultural land ( more than 50 yrs old). I converted a part of it in non-agricultural land in 2016 and wish to sell it in 2016-17 & 2017-18. In these 2 yrs my total income ( Salary & Business Income by sale/ trading of land) shall not exceed Rs.2 Cr. each year. Pl. reply following :-
    Q1. Can I being a PSU employee take benefit under 44 AD (the business is not by choice but by force because in order to convert the above land into some other urban property I am bound to sell it.

    Q.2 Can I compute the income from salel of above land in following manner :-
    a) Capital Gain – on Indexed Value of the agricultural land in 2016 (1981-82 to 2016-17)
    b) Income Business/ trading by sale i.e. diff.of Sale Value and Circle Rate Value of non-agricultural land ( converted as above).
    Please reply.

  6. sunil agarwal says:

    can turnover we calculated on the basis of cash receipt basis ?

  7. MOHD ZAHIR says:

    can servise provider take benefit of sec 44AD

  8. MOHD ZAHIR says:

    requested sir my question is is sec 44ad applicable to service provider ?

  9. 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…??

  10. Altaf says:

    Dear Sir,

    i am an accountant i would like to know how to maintain the books of accounts of Construction contractor (Civil) if any one have please let me know.

    Thanks & Regards,
    Altaf.
    M-9844794615

  11. Rahul Srivastava says:

    Sir my client is a partnership firm providing services to exporters for getting duty drawback. He gets some fees on which tds under section 194j is deducted. Although client is not a professional under section 44aa

    Can we apply sec 44ad to firm. In that case entire TDS deducted will be refunded to him

  12. Jai Mishra says:

    I think the Deductions you mentioned above are not 801111 to 80RRB but actually are Deductions under sections 80H to 80TTA.

    Reference – Explanation (a)(ii) of section 44AD of Income Tax Act, 1961

  13. n ramakrishnan says:

    how long we can file a revised return in case of 44AD

  14. CMA Sleeva Reddy says:

    Thank you so much for contributing. Keep Sharing

  15. Shiv says:

    What about applicability of TDS Provisions for the Person adopting Section 44AD

  16. SATISH CHAUHAN says:

    Dear sir
    thanks for the article.

    can a proffessional file the treturn under section 44AD?

    thanks in advance

  17. SUBHASH KARVA says:

    SIR TOTAL BROKERGE IS 350000/-
    HE IS LIABLE FOR 44AD?

    PUJAPATH RECEIPTS IS 550000
    HE IS LIABLE FOR 44AD

  18. vsnmurty says:

    Hi,
    Income from commission business is out side the scope of sec 44AD

  19. Puttswamy says:

    A very good time to release this article(filing time) , many of the assessee receive defective return notice for declaring loss in no accounts case.
    So have to take proper care

  20. Dixit Ranka says:

    A person is engated in the business of share Trading and related. Can he file the return under 44AD.

  21. R. K. Kotian says:

    Please clarify whether a partnership firm having a loss is covered by Section 44AD

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