If this Section is applicable to all business except Professions and that covered under section 44AE.

(1) Does it means that it is better that business such as Tuitions, Beauty Parlours, Hobby Classes, Retail Stores, Milk Centers, & other business which has turnover less than 60 lacs should take benefit of this section and declare 8% income of the turn over and remain free from maintaining a/c's books, etc.?

(2) What if an aassesse has any of the aforesaid business but his profit is more than 8% of his Turn over, still should he take advantage of this section? (can the AO take objection, that you have no expenses and your margin is more than 8% of the turnover )

If this Section is applicable to all business except Professions and that covered under section 44AE.

(1) Does it means that it is better that business such as Tuitions, Beauty Parlours, Hobby Classes, Retail Stores, Milk Centers, & other business which has turnover less than 60 lacs should take benefit of this section and declare 8% income of the turn over and remain free from maintaining a/c's books, etc.?

(2) What if an aassesse has any of the aforesaid business but his profit is more than 8% of his Turn over, still should he take advantage of this section? (can the AO take objection, that you have no expenses and your margin is more than 8% of the turnover )

Hello can anyone advise Please!

A person has Turnover of Rs. 50,00,000/- and Net Profit thereon of Rs. 7,50,000/-.

Now is it fair for him to take advantage of this Section and show NP @ 8% of the turnover i.e. Rs. 4,00,000/-. & accordingly pay tax on it or it would be appropriate to show the NP at actual Rs. 7,50,000/- ?

I understand that this provision has been made to dissuade assesses from declaring a profit of less than 8%. This amendment should have exempted even those tax payers from maintaining books of accounts who declares his Net Profit more than 8% of the Turnover, as he is behaving in a responsible manner and naturally helping the government and paying more tax.

But I think it is wrong to exempt persons from compulsory Audit who’s total Income does not exceeds the exemption limit.

This increases the complexity of the Income Tax Act and Why this amendment at stage when the Govt is in process to replace the entire Income Tax Act with Direct Tax Code.

as per definition of BUSINESS , the business includes professional.  so section 44AD covers professionals too.

as per definition of BUSINESS , the business includes professional.  so section 44AD covers professionals too.

Business has been defined in section 2(13) and profession  has been defined in section 2 (36). Hence provisions for 44AD is not applicable for profits and gains from profession.

i have one Problem for Contractor Income of Rupees 2400000/- i have calucate Tax  # 8% Gross Reciept  2400000/- is that Wright Please Suggest me early as the possible  192000/-

I Think, As per New Provision  , 44 AD Covers Income from Businees or Profession 

We are having jewellery business , maintaining BOA , This year due to rates of gold & silver on higher side our Profits are 15% of T/O. If we should go for 44AD this year declaring 8% profit of T/O. our T/O is less than 60 lacs.

This section has been inserted to replace existing section 44AD and 44AF and this new section will be applicable to any business (whether it is retail trade or civil construction or any other business) except the business of plying, hiring or leasing goods carriages referred u/s 44AE.

Hence the above section is not applicable to professionals.

sir one question about this presumtive business  8% tax rate applicable for this 12-13 financial year also continued or whether any change plz reply me 

sir one question about this presumtive business  8% tax rate applicable for this 12-13 financial year also continued or whether any change plz reply me