18 March 2010
In section 44AF of the Income-tax Act, after sub-section (5), the following sub-section shall be inserted, namely:—
"(6) Nothing contained in this section shall apply to any assessment year beginning on or after the 1st day of April, 2011.".
Discussion: With the introduction of Section 44AD, this section 44AF relating to presumptive income scheme for retail trade is now scrapped. As per the existing provisions, assessees carrying on retail business needed to admit only 5% of their gross turnover as presumptive income. With the scrapping of this section and introduction of 44AD, now they need to admit 8% of gross turnover as presumptive income.
21 March 2010
Hi Rajesh, for the assessment year 2010-11 the rate is 5%. However from assessment year 2011-12 44AF has been scrapped and merged with 44AD where the applicable rate is 8%. Regards, CA Shakuntala Chhangani
CAclubindia
