Babar, hair styler, salon, beauty parlour can these business opt 44AD presumptive tax scheme

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This discussion explores whether businesses like hair salons, barber shops, and beauty parlours can opt for the Section 44AD presumptive tax scheme. The advice confirms that such businesses are eligible, with future expansion plans also being considered. It clarifies the turnover limits for 44AD for FY 2022-23 and potentially FY 2023-24, and also outlines the GST turnover thresholds for registration and composition schemes.

john

john (Querist)
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09 June 2023 Mr. x is running a business where he has employed boys for cutting hair, hair styling and other related services. he purchases various materials required for the above service. he plans to expand his business to unisex salon and provide various other services in future.

Q-1. Can he opt for presumptive tax scheme u/s 44AD and based on total turn over presume 8% as taxable income. (wrt his current profession, wrt his future plans & also as per subject head for all such kind of business so that every other can benefit from this thread)
Q-2. What is the turnover limit under 44AD for F.Y. 2022-23 & F.Y. 2023-24
Q-3. What will be the GST turnover limit for this profession.

Thank you.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 June 2023 1. Yes. Future option depends upon the activities carried over.
2. Till FY 2022-23 its 2 Crs. For FY 2023-34 it may extends to 3 Cr., with digital receipt options.
3. Rs. 20 lakhs for registration & Rs. 50 lakhs for composition.

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john

john (Querist)
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15 June 2023 Thanks a lot Sir for your quick response.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 June 2023 You are welcome.

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