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.
The scheme u/s 44AD can be adopted by following persons -
1. Resident Individual
2. Resident Hindu Undivided Family (HUF)
3. Resident Partnership Firm ( NOT Limited Liability Partnership)
The scheme cannot be adopted by a Non Resident.
Following businesses are not eligible for scheme u/s 44AD :-
1. A person who is carrying on any agency business
2. A person who is earning income in the nature of Commission or Brokerage
3. Any business whose turnover or gross receipts exceeds Rs. 2 crore
Insurance agent cannot adopt scheme u/s 44AD
Manner of Computation :-
1. Income is computed @ 6% if turnover is received by an account payee cheque or draft or use of electronic clearing system
2. Income is computed @ 8% in other cases
No other deduction are allowed. Depreciation is also not allowed.
Books of accounts need not to be maintained.
Person need to pay advance tax on or before 15th of March every year other wise interest as applicable will be charged.
Once a person adopts the scheme he will have to follow it for the next 5 years.
Presumptive scheme of Professionals (Section 44ADA) :-
A person who is resident individual and in notified profession and whose turnover/gross receipts does not exceed Rs. 50 Lakhs can adopt presumptive taxation scheme u/s 44ADA.
All other provisions are same as per section 44AD.
Follow us on twitter : @Taxpundit1
Follow us on Facebook : taxpundit.org
Website : www.taxpundit.org and gst.taxpundit.org
Video on How to file ITR 4 : • Income Tax India | Pre...
If you like the video please share it on your social media and subscribe to our channel.
Thanks for watching.
20 сен 2024
