Section 44ad

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tony (Querist)

09 September 2019 Dear Sir,
earlier sec 44ad was only for contractors, from which ay it is started to available for all types of trades ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 September 2019 i. Such presumptive taxation u/s 44AD and 44AE was introduced by Finance Act 1994 w.e.f. A.Y. 1994-95. Under that regime, section 44AD was applicable to assessees engaged in the business of civil construction or supply of labour for civil construction. Whereas Section 44AE is applicable to assessee’s engaged in the business of plying, hiring or leasing of goods carriages where the assessee does not own more than 10 goods carriages at any time during the previous year.

ii. Yet another section 44AF was introduced by Finance Act 1997 w.e.f. A.Y. 1998-99 which was applicable to assessee’s engaged in retail trade of goods and merchandise.

iii. Now, by virtue of Finance Act (No. 2) of 2009, and w.e.f. A.Y. 2011-12, both Section 44AD and Section 44AF have been substituted by New Section 44AD, which is considered as a paradigm shift in the entire scheme of presumptive taxation.

tony

tony (Querist)

10 September 2019 in my one of case AO asked assessee to produce his itr for AY 2012-13, by serving notice u/s 142(1). Whereas asseessee has filed his return u/s 44AD that time. Now I have following queries -
1. whether asseessee should subit copy of itr filed earlier in response to that notice?
2. asseessee also asked to submit cash flow statement, whether he can deny to submit cash flow statement as he has declared his income on presumptive basis, and therefore accounts are not maintained?
Please enlighten me in this regard.
Thanks.

Shrikant Toshniwal

Shrikant Toshniwal (Expert)

10 September 2019 NICE CLARIFICATION AND ANSWER

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 September 2019 1 Give details of date of filing and acknowledgement number. Let them take from their records.
2 No account case no need to give cash flow statement.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 September 2019 You can submit ITR copy no problem.

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