Whether I will Be Covered By Sec.44AD?
This query is : Resolved
14 March 2011
I am making designs for my customers in computer and send them by image file. My Total Gross Receipts for the FY 2010-11 will be around Rs.38 Lakhs. Can I declare my income u/s 44AD as 8%? or this section is applicable only for trading business?
14 March 2011
Eligible business as per the said section is " any business except the business of plying,hiring.....". In view of the said definition ,your business is covered under section 44AD of the Income tax Act,1961.
MD. Ibrahim J. Attar
(Expert)
14 March 2011
Dear Coffin,
There was an amendment last year applicable to AY 2011-12 (PY 2010-11), wherein an assessee (Individual/HUF/Partnership Firm) could avail the benefit of presumptive tax rates. Section 44AD specifically provides for ANY business can be charged at presumptive rates with turnover of less than Rs. 40 lakh.
Hence, you can very well declare your income at 8% of gross receipts as the section is now applicable to ANY business and not only trading business.
There was an amendment last year applicable to AY 2011-12 (PY 2010-11), wherein an assessee (Individual/HUF/Partnership Firm) could avail the benefit of presumptive tax rates. Section 44AD specifically provides for ANY business can be charged at presumptive rates with turnover of less than Rs. 40 lakh.
Hence, you can very well declare your income at 8% of gross receipts as the section is now applicable to ANY business and not only trading business.
CA.ViVeK M ACA
(Expert)
14 March 2011
Eligible business ( Also refered to as persumptive Business) is a Business whose income shall be Pre defined By Tax law.
The income from such business shall be less than 60 lakh.
Section 44 AD deals with Civil construction or supply of labour for civil construction.
In my opinion, it will not be covered under presumptive Business since it is not a civil construction business.
Your business will be convered under the normal provision and tax have to be calculated in the normal way itself.
The income from such business shall be less than 60 lakh.
Section 44 AD deals with Civil construction or supply of labour for civil construction.
In my opinion, it will not be covered under presumptive Business since it is not a civil construction business.
Your business will be convered under the normal provision and tax have to be calculated in the normal way itself.
14 March 2011
Mr.Ibrahim
Turn over limit is increased to Rs.60/-lacs w.e.f. 01/04/2011 by the Finance Act,2010.
Turn over limit is increased to Rs.60/-lacs w.e.f. 01/04/2011 by the Finance Act,2010.
MD. Ibrahim J. Attar
(Expert)
14 March 2011
Mr. Vivek,
Apologies, but I would request you to kindly refer to amendment for Section 44AD, which covers other business as well and hence the above case is covered under section 44AD.
Apologies, but I would request you to kindly refer to amendment for Section 44AD, which covers other business as well and hence the above case is covered under section 44AD.
MD. Ibrahim J. Attar
(Expert)
14 March 2011
Thanks Mr. Warrier, yes the turnover limit has been increased to Rs. 60 lakh.
14 March 2011
Mr. Vivek
U are absolutely wrong. Pl see the substituted section w.e.f 01/04/2011 introduced by the Finance Act,2010. What u have said is about the pre amended section.
U are absolutely wrong. Pl see the substituted section w.e.f 01/04/2011 introduced by the Finance Act,2010. What u have said is about the pre amended section.
CA.ViVeK M ACA
(Expert)
14 March 2011
it is with Effect from 1/04/2011. What is the status for the month of March 11? ( means the AY 2010-11).
CA.ViVeK M ACA
(Expert)
14 March 2011
Thank you Both authors,
let me to know what is applicable for the AY 2010-11?
let me to know what is applicable for the AY 2010-11?
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