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44AD presumptive taxation

poonam (article) (21 Points)

19 August 2020

I am doing business in which I earn more than 8% and I am paying tax @ 8% under presumptive taxation 44 AD can I liable in future for any income escapement???

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 19 August 2020

No, You are not liable in future for any income escapement. As you already disclosed income as per provision of laws.

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Himanshu (Student CA Final ) (114 Points)
Replied 20 August 2020

Sec 44AD deals with Presumptive Taxation where assessee who has not maintained books of accounts and having gross receipts or turnover less than 2 Cr can offer income to tax @ 8% or above , few business are outside the scope of this section such as commission etc.

since its a specific section , income escapement question does not arise however it is advisable to maintain profit rate as per industry or similar businesses.

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