Article discusses about Meaning of presumptive taxation scheme, Presumptive Taxation Scheme of Section 44AD, Section 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.
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 80HH 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 business | XXXXX |
| Less : Expenses incurred in relation to earning of the income | (XXXXX) |
| Taxable Business Income | XXXXX |
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 is computed on presumptive basis at the rate of 8% of the turnover or gross receipts of the eligible business for the year.
In order to promote digital transactions and to encourage small unorganized business to accept digital payments, section 44AD is amended with effect from the assessment year 2017-18 to provide that income shall be computed at the rate of 6% instead of 8% if turnover/gross receipt is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed during the previous year or before the due date of filing of return under section 139(1).
Hence, 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 @ 6% or 8%, as the case may be, of the turnover or gross receipt.
However, a person may voluntarily disclose his business income at more than 8% or 6%, as the case may be, of turnover or gross receipt.
The presumptive income computed as per the prescribed rate 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 6% or 8% will be the final taxable income of the business covered under the presumptive taxation scheme. In other words, the income computed as per the prescribed rate 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 @ 6% or 8% (as the case may be) 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 15thMarch 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 6% or 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 2021-22. However, for AY 2022-23, if 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 2023-24 to 2027-28.]
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
The Finance Act, 2021 has amended provisions of section 44ADA to define eligible assessee. W.e.f. Assessment Year 2021-22, the benefit of section 44ADA is eligible only in case of assessee who is an:
a) Individual; and
b) Partnership firm other than a Limited Liability Partnership as defined under clause (n) of sub-section (1) of section 2 of Limited Liability Partnership Act, 2008.
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
Any person opting for the presumptive taxation scheme under section 44ADA is liable to pay whole amount of advance tax on or before 15th March 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.
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.
For Heavy Goods Vehicle, income will be computed at the rate of Rs. 1,000 per ton of gross vehicle weight for every month or part of a month during which the heavy goods vehicle is owned by taxpayer. In case of vehicles other than heavy goods vehicle, income will be computed at the rate of 7,500 for every month or part of a month during which the goods carriage is owned by taxpayer. Part of the month would be considered as full month.
Note 1 : If the actual income is higher than the presumptive rate, i.e., higher than Rs. 1,000/Rs. 7,500, then such higher income can be declared.
Note 2 : “Heavy Goods Vehicle” means any goods carriage having gross vehicle weight exceeding 12,000 kilograms.
Illustration
Mr. Khush is engaged in the business of plying, hiring or leasing of goods carriage. Throughout the year 2022-23 he owned 9 goods vehicles (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, for Heavy Goods Vehicle, income will be computed at the rate of Rs. 1,000 per ton of gross vehicle weight for every month or part of a month during which the heavy goods vehicle is owned by taxpayer. In case of vehicles other than heavy goods vehicle, income will be computed at the rate of 7,500 for every month or part of a month during which the goods carriage is owned by taxpayer.
In the present case, Mr. Khush owned 9 goods vehicles (other than heavy goods vehicles) throughout the year and, hence, income will be computed as follows:
|
Particulars |
Amount (Rs.) |
| Income per month per goods vehicle | 7,500 |
| (×) No. of goods vehicles | 9 |
| Monthly income as per the provisions of section 44AE from 9 goods vehicles | 67,500 |
| (×) No. of months in the year during which the vehicles were owned | 12 |
| Total income from business of plying, hiring or leasing goods carriages as per the provisions of section 44AE | 8,10,000 |
Illustration
Mr. Sunil engaged in the business of plying, hiring or leasing goods carriages. He owned 5 heavy goods vehicle having gross weight of 13,000 kilograms and 4 other goods vehicle during the previous year 2022-23. What will be his taxable income as per the provisions of section 44AE?
**
As per the provisions of section 44AE, for Heavy Goods Vehicle, income will be computed at the rate of Rs. 1,000 per ton of gross vehicle weight for every month or part of a month during which the heavy goods vehicle is owned by taxpayer. In case of vehicles other than heavy goods vehicle, income will be computed at the rate of 7,500 for every month or part of a month during which the goods carriage is owned by taxpayer.
In the present case, Mr. Sunil owned total 9 goods vehicles in which 5 are heavy goods vehicles having gross weight of 13,000 Kilograms. Hence, income will be computed as follows:
|
Particulars |
Rs. |
| Income per month per heavy goods vehicle ( 13,000 kilograms i.e., 13 ton) | 1,000 x 13 |
| (x) No. of heavy goods vehicle | 5 |
| Monthly income in case of heavy goods vehicle as per the provisions of section 44AE | 65,000 |
| (x) No. of months in a year | 12 |
| Total income as per the provisions of section 44AE from heavy goods vehicle (A) | 7,80,000 |
| Income per month per goods vehicle (other than heavy vehicle) | 7,500 |
| (x) No. of vehicles other than heavy goods vehicle | 4 |
| Monthly income as in case of vehicles other than heavy goods vehicle as per the provisions of section 44AE | 30,000 |
| (*) No. of months in a year | 12 |
| Total income as per the provisions of section 44AE from vehicles other than heavy goods vehicle(B) | 3,60,000 |
| Total income from business of plying, hiring or leasing goods carriages as per the provisions of section 44AE (A+B) | 11,40,000 |
The presumptive income computed at the rate of Rs. 1,000 per ton or 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. 1,000/Rs. 7,500 will be the final income. In other words, the income computed at the rate of Rs. 1,000/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 presumptive 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. 1,000 per ton or Rs. 7,500 per goods vehicle per month
A person can declare his income at lower rate (i.e., at less than Rs. 1,000 per ton or 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 44AB.
[As amended by Finance Act, 2022]
will it be possible to cover income of music teacher (singer) u/s 44AD since it is not specified u/s 44AA
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
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
SIR,
MY CLIENTS HAVING 2 OMNI BUSES AND GET COLLELCTION IS BELOW RS. 1CR. WHICH SECTION APPLICABLE i.e., 44AD OR 44AE. PLEASE EXPLAIN?
Mr.prabhakar says, You strictly prohibited claimed any expenditue, If you opted 44AD
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?
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
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.
Dear sir,,
Whether salary received by partner can be offered under the Section 44AD while filling return of income.
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
Can you please tell is there any exemption for website income
I AM RECEIVED PROFESSIONAL INCOME SHALL I FILE IT RETURN U/S 44 AD OR
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 ?
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
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.
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.
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.
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
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 ….
if a person turnover is 1000000 which itr he should file, if his business is wholesale
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 ?
can a medicine profesional(doctor) file return form 4s
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
i want to know about 44ad section, and want know name of particular businesses which allow under this section
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.
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
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.
In case of a partnership firm is 8% of turnover to be calculated after remuneration and interest of partners or before.
Please Advise.
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 …
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?
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.
wud like to thank for specisal provisions realting to44………..
sec44AE ACT
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
THE DOCTOR SHOULD USE ITR 4 WHETHER HE OPERATE THE CLINIC FROM RESIDENCE OR ELSEWHER.
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
What income tax form will a doctor use who carries out his practice from his residence
what is the presumptive income of heavy good vehicle rs.5000 or rs.3500
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.
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.
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.
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 ?
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
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?
44AD of IT is applicable to whosale traders
44AF of IT is applicable to wholesale business
44 af Of IT is applicable to wholesale business
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.
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??
what is applicable depreciation u/s 44AE, if yes, pls sent computaion and no than same