PRESUMPTIVE TAXATION:
· The Concept of Presumptive Taxation was made to increase the taxability with Small Business.
· Such business does not comes to purview Sec.44AB
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PARTICULARS
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SEC.44 AD
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SEC.44AE
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SEC.44AF
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Applicable To
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Assessees engage in Business of
Civil Construction or Supply of Labour for Civil Construction.
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Assessees engage in Business plying, Hiring or leasing goods carriage.
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Assessees engaged in business of RETAIL TRADE.
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Explanation:
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1) Construction or repairs of any building, bridge, dam or other structure or of any Canal or road.
2)Execution of any Work contract
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Assessees shall not own more than 10 vehicles during the year.
(Owing include Owned or taken for Hire.)
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Total turnover of business shall not exceed more than 40lacs.
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Presumptive Income
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8% of Gross receipt Paid or Payable.
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Heavy Vehicles Rs.3500pm
Other Rs.3150pm.
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5% of Total Turnover
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No Deduction
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No Deduction shall be allowed under Sec30 to Sec38.
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Deduction, In Case of Firm
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Salary & Interest to Partner is allowed Subject to limit of Sec40.
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=Do=
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=Do=
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Lowe Income Consequences
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Lower income can be declared by Assessees in such case he shall maintain all documents as per Sec 44AA & Audit as per Sec 44AB.
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=Do=
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OTHER POINTS:
· Other Provision of the Act is applicable as it is.
· For e.g.: 1) Deductions shall be allowed from Sec. 80C to Sec.80U
2) Loss from business can be set-off.
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