U/s 44AD Presumptive Income - ITR

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A company has chosen the Section 44AD presumptive income scheme, declaring income at 8% of turnover. However, their actual books show a profit of 12%. The query seeks guidance on which figure should be used for computing taxable income. It's clarified that companies cannot opt for Section 44AD; it's for individuals, HUFs, or partnership firms, who can declare income at or above the prescribed rate.

Elbin

Elbin (Querist)
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19 August 2023 A company has opted section 44AD Scheme & as per the terms is opting to file return at 8% turnover, whereas the actual books show a profit of 12%. What should be taken for computation of taxable income.
Please Guide.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 August 2023 A company cannot opt for presumptive assessment u/s, 44AD, unless you mean it to be any individual or HUF or partnership firm.
In that case you can declare any income be actual or any thing equal or above 8 %.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 September 2024 Good Luck.

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