14 March 2011
I am making designs for my customers in computer and send them by image file. My Total Gross Receipts for the FY 2010-11 will be around Rs.38 Lakhs. Can I declare my income u/s 44AD as 8%? or this section is applicable only for trading business?
14 March 2011
Eligible business as per the said section is " any business except the business of plying,hiring.....". In view of the said definition ,your business is covered under section 44AD of the Income tax Act,1961.
There was an amendment last year applicable to AY 2011-12 (PY 2010-11), wherein an assessee (Individual/HUF/Partnership Firm) could avail the benefit of presumptive tax rates. Section 44AD specifically provides for ANY business can be charged at presumptive rates with turnover of less than Rs. 40 lakh.
Hence, you can very well declare your income at 8% of gross receipts as the section is now applicable to ANY business and not only trading business.
Apologies, but I would request you to kindly refer to amendment for Section 44AD, which covers other business as well and hence the above case is covered under section 44AD.
14 March 2011
Mr. Vivek U are absolutely wrong. Pl see the substituted section w.e.f 01/04/2011 introduced by the Finance Act,2010. What u have said is about the pre amended section.
CAclubindia
