Am running a CD shop business [ renting of CD's ] receipts from business more than 10,00,000...whether i can use 44AF presumtive taxation or normal slab rates applicable to Individual assessee ? what if my receipts are less than 1,50,000 ?
please clarify w.r.t 44 AB and 44 AA
From A.Y. 2010-11 new Sec. 44AD is applicable and the presumptive rate of tax is 8%. It is possible to declare lower income if the taxpayer maintains books of accounts and does compulsory audit. However compulsory books of accounts maintenance and compulsory audit applies only if your total income exceeds exemption limit. So if your receipts are less than Rs. 1,50,000 then Sec 44AA & Sec 44AB will not apply.
As your gross receipts is less than Rs 40 lakhs, section 44AD is applicable and your income shall be 8% of gross receipt. However, you can declare higher income. But if you declare lower, you must get your accounts audited.
Dear Janan,
Section 44AF is applicable to Retail business and whose turnover is less than 40 Lakhs.
income form CD rentals will not be treated as Retail Business hence, section 44AF will not be applicable to your business.
Section 44 AB will not be applicable to ur business as ur gross turnover does not exceed 40 lakhs and your income is less than Rs.10 lakhs.
Section 44AF will be applicable to you as your receipts exceeds 10 laks
VIKAS VERMA & CO
New Delhi
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