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PRESUMPTIVE TAXATION

pappu mishra 
on 05 January 2009

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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
 
 
 

PARTICULARS
SEC.44 AD
SEC.44AE
SEC.44AF
Applicable To
Assessees engage in Business of
Civil Construction or Supply of Labour for Civil Construction.
Assessees engage in Business plying, Hiring or leasing goods carriage.
Assessees engaged in business of RETAIL TRADE.
Explanation:
1) Construction or repairs of any building, bridge, dam or other structure or of any Canal or road.
2)Execution of any Work contract
Assessees shall not own more than 10 vehicles during the year.
(Owing include Owned or taken for Hire.)
 
Total turnover of business shall not exceed more than 40lacs.
Presumptive Income
8% of Gross receipt Paid or Payable.
Heavy Vehicles Rs.3500pm
Other Rs.3150pm.                       
5% of Total Turnover
No Deduction
No Deduction shall be allowed under Sec30 to Sec38.
=Do=
=Do=
Deduction, In Case of Firm
Salary & Interest to Partner is allowed Subject to limit of Sec40.
=Do=
=Do=
 
Lowe Income Consequences
Lower income can be declared by Assessees in such case he shall maintain all documents as per Sec 44AA & Audit as per Sec 44AB.
=Do=
=Do=

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.




Category Income Tax
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pappu mishra 

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