From Assessment year 2011-12, a new section 44Ad has been inserted in the I.T.Act
The new Section will be aplicable to any business ( whether it is Retail trade,or Civil construction or any other business).
The provisions of the new Section will be applicable if the following conditions are satisfied:
1. Assessee eligible for the purpose of this Section has to be an Individual/a HUF/a Partnership Firm( not being a LLP);
2. The assessee has not claimed any deduction u/s.10A,10AA,10B,10BA,80HHto 80RRB in the relevant Assessment Year;
3. The is not engaged in the business ofplying,hiring,or leasing goods carriages referred to u/s. 44AE; and
4. Total Turnover/ Gross Receipt of the Assessee in the previous year should not exceed Rs. 60.00 lakhs.
Consider the following cases :
Turnover is 50 Lac
case-1 : NP 2 Lac
case-2 : NP 5 Lac
Now if u want to take benifit of sec.44AD :
case-1 : u can claim minimum amount of upto 4 lac (i.e.8% of turnover)
case-2 : In such case u can claim actual profit (i.e. higher than 8% of t/o) of amount 5 lac.
I hope it will help u to better understand.