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Jul 24, 2023 · Learn about taxability under Section 44AD of Income Tax Act 1961. Understand eligibility, computation, deductions, consequences, and ITR filing under presumptive taxation scheme.
Jun 5, 2024 · Section 44AD - Presumptive Scheme for Businesses. By Mohammed S Chokhawala. |. Updated on: Jul 4th, 2024. |. 3 min read. The government has introduced the presumptive taxation scheme under section 44AD to give relief to small taxpayers having business income.
Presumptive taxation schemes to relieve small taxpayers are provided under Section 44AD, 44ADA and 44AE. While Section 44ADA is for professionals Section 44AD and 44AE concerns small business taxpayers. Let us understand them in detail.
Apr 13, 2023 · The objective of section 44AD of the Act is to provide a presumptive income scheme for small taxpayers to lower compliance costs for them and to reduce the administrative burden on the tax machinery. The following features of section 44AD may be noted:
1 day ago · If you opt for presumptive taxation under Section 44AD, your net income is considered as 8% of your turnover and you will pay tax on that income. If your receipts are in digital (non-cash) form then only 6% of your receipts is your net income and you will pay tax on that income.
May 23, 2024 · Under this scheme of section 44AD the individuals who are running a business are not required to maintain books of account regularly. Individuals who adopt this scheme can declare their income at the rates prescribed in the scheme. They even don't have to get their accounts audited regularly.
Section 44AD is a presumptive taxation provision enacted by the Income Tax Act to reduce the tax burden on small taxpayers or assessees. Individuals covered by this plan are not required to keep or display books of account, nor are they obligated to have them audited.
