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section 44AD

30 December 2017

a. how to compute the section 44AD?
b. does it applies to all business?

c. if a business has turnover of 2crores and net profit of 50lakhs. which amountis taxable.

kindly let me know.

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5 Replies

Rishi Mehta (Ur friend ) (1533 Points)
Replied 30 December 2017

Business income under Section 44AD shall be at least 8% of turnover. You can calculate business income at higher Percentage.
section 44AD is applicable for each business separately.
further, turnover limit has been increased from Rs. 1 crore to Rs. 2 crore.

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sanjith kotni (Articled assistant) (663 Points)
Replied 30 December 2017

As per sec 44 AD maximum turnover for claiming income under presumptive tax is 2 crore however the limit is 1 crore only for applicability of tax audit . presumptive income from FY 2016-17 is 6% of turnover realized through bank /cheques other than cash and 8% for amounts realized in cash.earlier the rate was 8% for total turnover.But from FY 2016-17 benefit of 6% is giving for promoting non cash transactions so make your sales online for tax benefit.so in your case it will be better to claim under 44 AD 160000