Tax audit

Hi Rama Krishnan,

Yes. You are correct..

Please refer- https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/572/Press-Release-Benefits-of-Digital-Economy-20-12-2016.pdf

The provision as per the Income Tax Act- Special provision for computing profits and gains of business on presumptive basis.

44AD. (1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession" :
41[Provided that this sub-section shall have effect as if for the words "eight per cent", the words "six per cent" had been substituted, in respect of the amount of total turnover or gross receipts which is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account during the previous year or before the due date specified in sub-section (1) of section 139 in respect of that previous year.]

Also the press release for the same by CBDT as below :

https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/572/Press-Release-Benefits-of-Digital-Economy-20-12-2016.pdf