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]
So in a case where presumptive taxation is opted for u/sec 44ADA, whether interest under Sec 234B is chargeable for late payment of advance tax ? Also is interest under Sec 234C charged for all quarters or only the last month ?
Whether the turnover under Section 44AD is inclusive of taxes (GST) or exclusive of taxes.
UNDER WHICH SECTION, A BEAUTY SALON CAN FILE IT’S ITR UNDER SECTION 44AD OR 44ADA ?
Dear Sir,
My wife running Educational Class and getting Receipt Rs.276000/- 50% income nearest Rs.180000/-, She want to file ITR-4S return, But while filling of itr-4s for F.Y.17-18 & A.y-18-19 required gstin No. which is not applicable as well while filling return message is going on wrong filed choose…why this message is going on….
as04071972@gmail.com
I have Earned the 194j Income and which Itr Filed and i thing in ITR4 Sugam and than how Deducated under section 44ADA Claimed for Example Explained.
Dear Sir,
in my previous reply I asking you sir that my wife is income from teaching is rs.276000/- but I do not declared that this income is in toal receipt in cash…. then she will eligible for presumptive income tax act.. and which ITR FORM she will filed return… & how?
Pls. explain….
Dear Sir,
If my wife total receipt Rs.276000/- from Teaching (Class), She can eligible for file return under presumptive income act?, and she declared above 50% income from teaching /professional charges
and which section he file here return? and which ITR FORM…
Pls. give reply…
Which form should I file my return in if I declare more than 50% of my Income from profession under the presumptive scheme under S. 44ADA as taxable profits and have income from more than one property.
Can Land Owner cum builder go for 44AD presumptive basis of taxation ?? (After conversion of Agr.Land to Stock in Trade)
If a person having turn over above Rs 2 cr during FY 17-18, can he go fo Presumptive Income Scheme of 44AE for hiring and plying of Truck vehicle.
A FIRM HAVING A TURNOVER OF RS.50.00 LACS AND INCOME SHOWN BELOW 8 % AND THE FIRM IS AUDITED U/S 44AB OF THE ACT. IN THIS CASE THE PARTNERS SALARY AND INTERST CAN BE CLAIMED OR NOT IN PROFIT AND LOSS ACCOUNT AS EXPENDITURE. PLEASE CLARIFY.
i am of 79 yrs. a ca in practice having a small gross professional income of Rs. 1.48 lacs apart from CGs & OI & wants to opt for declaration u/s 44ada. Is there any need to show CIH for at the end of the year. If that is so disclosed then there is mis match in the BS as shown by the auto calculation by the system.Pls advise.
sir i have 1 truck i run that myself ihave income around 350000 which itr sould i file for assesment year 2016-17 and 2017-18
my retail business is consisting more than 3 items and net profit margin is less than 8 % in some item but over all aggregate net profit is above 8%. so is it necessary for me to get audit report for the same.
Can 44ADA opt by company? as it says a person resident in india.it is not providing any further exclusion.please can you explain this.
I have filed my ITR for F.Y. 2016-2017 u/s 44 AD & In the next year i.e. F.Y. 2017-2018 I hope my turn over jumped. May I filed my next return with audited with out taking option of 44 AD . If I to do, What impact on my tax liability
whether the human relation development and other industrial administrative management consultancy is covered under presumptive taxation scheme of section 44ADA
“amount of cash balance” u/s 44ada contains amount of bank + cash balance; or only cash balance
Can I disclose income from business u/s 44AD at the rate higher than 8% / 6% as per my P&L working for AY 2017-18 in ITR 4 – SUGAM.
For Eg :
1) Total receipts : 800000
2) Profit as per my working : 235000
3) @ 6% : 48000
Which I should show in ITR 4 SUGAM and How ?
i have commission and brokerage income, and interest income from other sources, and TDS also there. tell me which ITR I have to file for A.Y. 2017 -18
DEAR SIR/MADAM,
I AM A DOCTOR WITH MY OWN HOSPITAL AS WELL AS OWN MEDICAL SHOP , AM I ELIGIBLE FOR 44AD ?
Hi Sir. I am individual providing consultancy services to corporates on investment strategies. My annual income is ~ Rs. 30 lakhs. Am i eligible for presumptive income scheme u/s 44ad/44ada. If yes, please advise if it is section 44ad or 44ada since i am not covered under specified list of professions u/s 44AA(1)
Hi Sir,
Can i file income tax return ITR-V on the presumptive basis containing profit @ 20%?
Is it Valid?
Is it necessary to maintain books of accounts if i book my profit more than 8%?
A professional under Alternative Medicine running a Clinic earns money by offering medical services to patients but he is not maintaining any Book of Accounts. Can he opt for Presumptive Tax, under income Tax Law as he just started getting turnover attracting Taxable-income . However he has decided to provide infrastructure to maintain account books from the next financial year
Need help.
I am a retired defence officer.
Apart from my pension, I get sitting fees and remuneration for being a member of a board of directors amounting to approximately 10 lakhs a year.
Which form is applicable for me for filing IT return – ITR IV or ITR IVS ?
I am a Manufacturer doing stone polishing activity. Can i declare my income U/s 44AD of income tax act.
whether Manufacturing business is included in the above section
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
Can a partnership-firm that provides Software Development Services with annual revenue less than 10Lac avail benefit of sec 44AD?
no
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 ???
I having Small Photo copy ( Xerox) Business , which income not more then 50000/ year which ITR to be filled up
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
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.
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
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
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?
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.
Dear Sirs,
I am having commission from Lic and Post office. Can I file my return u/s 44AD.
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 ,
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.
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
Sir,
Income from school van is taxable u/s 44ae ??
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.
School Bus/Van to carry student to school whether he can file his return under 44AE treated as Presumptive Income…..
SIR,
I HAVE ONE MAHENDRA TATA 407 WHAT AMOUNT CHARGE FOR MONTHALY CHARGE ? for AY2015-16
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
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???
44AE APPLILCABLITY IS HARVESTER MONTHY 5000/- INCOME FILE TO 44AE SEC PLS TELL ME SIR
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