Presumptive taxation

This query is : Open

Manoj (Querist)
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24 August 2011 Dear All,

I have few question to be discussed with you all in respect to presumptive taxation. You all requested to please put your opinions on these questions:

1. Presumtive taxation is an alternate method of computing tax liability or not?

2. Presumptive taxation is mandatory or optional?

3. Presumptive Taxation is at the option of Assessing Officer or at the option of taxpayer?

4. Newly introduced section 44AD of Income Tax Act, mandatory or optional to the taxpayer?

5. If it is not mandatory then it is optional in full or in part i.e., some provisions are mandatory and rest is optional?

Thanks

CA. Manoj Gupta

CA. Anoop Gadia

CA. Anoop Gadia (Expert)
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24 August 2011 it is only opted when your TO less than audit limit:

1. it is not a alternate.
2. it is optional
3. option of tax payer
4. optional
5. option in full not in part

Manoj

Manoj (Querist)
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25 August 2011 Thank you Mr. Anoop Gadia for putting your views:

Sir, i wud like to ask a counter question on your opinion:

If it is at the option of assessee to choose presumptive taxation, then whether a assessee who has not opted for presumptive taxation (newly introduced)u/s 44AD and declared a profit less than 8% on turnover below Rs. 60 lacs is required to get his accounts audited.

Whether Assessing Officer on his own can cover the assessee u/s 44AD on the ground that profit is below 8% and turnover is less than 60 lacs and assessee is running a eligible business as per section 44AD.

Pls share your views in the light of your previous views.

Thanks

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