Computation of income
Applies to:
Any eligible assessee engaged in an eligible business. Eligible assessee is defined as an individual, HUF, resident partnership firm, but excludes an LLP under the LLP Act, 2008 and any assessee who has claimed a deduction under sections 10A, 10AA, 10B, 10BA or heading C of Chapter VIA (sections 80I-A, 80-IB, etc.)
Deemed Income:
8% of the total turnover or gross receipts of the assessee on account of such business or any higher amount voluntarily declared by him shall be deemed to be his income chargeable to tax.
Therefore, your taxable income would be 8% of Rs.55 lakh (Gross Receipt).
And you can avail deductions under chapter VI A (i.e, 80C to 80G)
Income is as stated by Mr. Mathur.
Deduction u/s 80C can be availed to the extent of Rs. 2,00,000/- in your individual return. Assuming you are a sole proprietor, yes you can claim such dedction on TOTAL Income. i.e.
Income from business(55lacs*8%)+Income from other sources(interest, etc)
Hello @ Rashi
As per your comment, Deduction u/s 80C can be availed to the extent of Rs. 2,00,000/- in your individual return.
I think it is wrong..
Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2014-15 (assessment year 2015-16).
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