Business and profession
tanvi jain (23 Points)
22 July 2019
what is the rate of presumptive business income?
tanvi jain (23 Points)
22 July 2019
Matoshree Thakur
(other)
(295 Points)
Replied 22 July 2019
Under section 44AD 6/8% (by bank/cash) of Turnover is considered as deemed profit.
While u/s. 44ADA its 50%. of Gross Receipts.
Matoshree Thakur
(other)
(295 Points)
Replied 22 July 2019
6% of turnover made by banking channel like cheques. draft, RTGS etc.
8% for cash mode transaction.
Nikhil Bhatia
(Article)
(309 Points)
Replied 22 July 2019
J S BHAVSAR
(CONSULTING)
(1288 Points)
Replied 22 July 2019
| Originally posted by : tanvi jain | ||
 |
what is the concept behind presumptive income? |  |
https://www.livemint.com/Money/B1IDYFwT0Xh329M7IPeDNM/What-is-presumptive-taxation-scheme.HTML
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 22 July 2019
1. It is not a complex one to understand the concept behind the introduction of sec 44AD, 44ADA, and sec 44AE. These three provisions are introduced for showing profit under presumptive taxation scheme.
2. Small taxpayers find it hard to maintain books of accounts, carry out tax audits and other compliance burdens. Hence, IT came up with a simple way to make them pay tax based on a presumptive basis.
3. It is so simple that you only need to maintain the records relating to your Gross receipts or T.O to determine the tax liability and no need to maintain detailed books of accounts.
4. It is considred that all the expenses and deductions (except Chapter VI-A) are deemed to be have been allowed on such profit.
5. Thus it is an option available to the small taxpayers to pay their tax based on a presumptive basis.
Please correct me if the above interpretation has an alternative view.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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