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6% assumed income under presumptive taxation scheme
Sir/Madam,
It has to be noted that the Presumptive Taxation scheme under Section 44AD is informed that 6% of total receipts/Accrued income should be considered as total Income. However, the effective date was not intimated for this. Could anyone help me on whether this 6% presumption income is applicable for Financial Year 2016-17 or for assessment year 2017-18 is applicable.
Replies (4)
This scheme is applicable for financial year 2016-17. It has been clearly mentioned in memorandum explaining finance bill. Also these were the words of his speech
" There is a scheme of presumptive income tax for small and medium tax payers whose turnover is upto ` 2 crores. At present, 8% of their turnover is counted as presumptive income. I propose to make this 6% in respect of turnover which is received by non-cash means. This benefit will be applicable for transactions undertaken in the current year also."
Sir,
For this, Income tax department should give notification to give effect. I am searching for that.
Is that right to go forward considering the memorandum. Please brief for my understanding.
For this, Income tax department should give notification to give effect. I am searching for that.
Is that right to go forward considering the memorandum. Please brief for my understanding.
Notifications are not required when you have amended the act. Memorandum is also an official document.
Sir,
In my view, the words in Section 44AD of Income Tax Act 1961 needs to be amended with wordings 8% in case of cash transactions and 6% in case of digital mode.
In my view, act itself needs to be amended.
In my view, the words in Section 44AD of Income Tax Act 1961 needs to be amended with wordings 8% in case of cash transactions and 6% in case of digital mode.
In my view, act itself needs to be amended.
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