08 June 2011
Presumptive business is such small business where turnover does not exeed the limit of tax audit and as such, assessee is not required to keep books of account and income is computed on the basis of fixed percentage. Examples of this business is retail trade-income would be treated as 5% of total turnover, civil construction-income would be treated as 8% of gross turnover, plying of trucks etc.-income is treated as fixed amount per month.
If the taxable profit is claimed less than the rate fixed, then the books are to be maintained and audit report to be taken u/s 44Ab.
CAclubindia
