The presumptive scheme of taxation lessens the compliance load on smaller professions and facilitates relieve of executing company. Under the presumptive plan of taxation, profits/taxable money is presumed at fifty% with the gross receipts.
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Section 44AD – According to Segment 44AD, wherever a taxpayer opts for presumptive taxation scheme for any from the fiscal 12 months he is needed to carry on to opt for the same for up coming 5 many years. If he fails to take action, he won't be qualified to choose presumptive taxation scheme u/s 44AD for 5 several years succeeding the year through which he opts out. Further more, with regard to These 5 economic several years wherever taxpayer is ineligible to go with presumptive taxation plan u/s 44AD, regular books of account need to be maintained and audit shall be conducted if total earnings exceeds simple exemption limit.
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Consequently the taxpayer can choose for that presumptive taxation plan underneath portion 44ADA as well as the taxable money chargeable is 50% of the full receipts.
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