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. Sipahi is running a medical store.
What if there is Loss of Rs. Answer The situation will not change even in case of loss. The Return will be filed as per book results only. XYZ is a partnership firm.
The relevant details are as under: Answer The firm is covered by first condition of 44AD 5i. Now the question arises for consideration is whether NIL amount is an amount and can it be considered as the maximum amount not chargeable to tax?
In Central Excise it is a trite law that NIL rate of duty is a specified rate of duty for all purposes of the Act and hence all provisions, notifications, etc. It implies that duty is leviable on goods at NIL rate.
The same logic can be extended to loss cases as well However, the logic, though apparently correct, is highly technical in nature and may lead to furious litigation on the subject. What if, in the same example, if the details are as follows: Answer If assessee is running multiple businesses, turnover of all those businesses shall be determined as per method of accounting regularly employed for respective businesses.
Further the turnover so determined shall be clubbed to determine whether limit of Rs. Thus section 44AB is applicable as it is Qua Assessee. Now, the point that needs consideration is whether, even after applicability of section 44AB, can the assessee take advantage of section 44AD in respect of each business independently as the Turnover from each distinct business does not exceed Rs.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%).
They are Section 44AD meant for computing income at 8 per cent of the turnover and For resident taxpayers, there are only two sections providing for presumptive determination of income from business.
Starting a Business. First, assess your idea.
Then write a plan and start filing the necessary paperwork.» Will Your Business Idea Work?» Choose a Business Entity Type» Write a Business Plan» Government Business Requirements» Finding the Money» Counseling & Resources» Training & Events» Statistical.
Depending on quantum of work Kalyani Nagar, Pune – (India) [email protected] +91 If my business turnover less than Rs.
25 Lakhs, can I still opt for a higher paid plan? Yes, certainly. The advantage with taking a higher plan would be that a CA will review all the bank statements and do a thorough expense categorization for you.
Section 44AD | Profits, Gains of Business on Presumptive Basis Presumptive Taxation is a simple scheme incorporated in Income Tax Laws to give relief to small taxpayers.
There are two plans, viz., Section 44AD & Section 44AE.