please tell me Sec 44AD of income tax Act.
Eligible Assesse: Individual, Resident HUF, Resident Firm (other than LLP)
Applicability: Any bussiness except metioned u/s 44AE and turnover of such business does not exceed Rs 60 lakhs.
Presumptive Income: 8 % of turnover.
No deduction can be claimed other than 40b
Advance TAx provisions not applicable.
No requrirements to maintain books of accounts(except where declared income is less than presumptive income u/s 44 AD)
Sonam Bidasaria
(CA)
(770 Points)
Replied 12 May 2013
I want to add few more points :
1. Limit of Rs 60 lacs is only applicable till Asst Year 2013-14. W.e.f Asst Year 2014-15, provisions of Sec 44AD will be applicable if gross reecipr/ turnover does not exceed Rs. 1 Crore.
2. Provision of Sec 44AD wiil not apply to
(i) a person carrying on profession as referred to in sub-section (1) of section 44AA;
(ii) a person earning income in the nature of commission or brokerage; or
KORGAONKAR ASSOCIATIES
(pratice)
(118 Points)
Replied 12 May 2013
hi ashish sir,
I want to know that which ITR is to fill for 44AD no books of accountants 8% profit
if answer is ITR4S than this ITR we can use for Patnership Firm Which is Other than LLP
let me know also we can use any other Income Tax Form for Filling Income Tax Return of Patnership Firm which want to use 44AD benifit for the as yr 2013-14
thanks in advance
KORGAONKAR ASSOCIATIES
(pratice)
(118 Points)
Replied 13 May 2013
sir,
I Just want to know ITR4S can I use as its for Presumptive Income as 8% of total Income
no books of accountants,
no advance tax
for My patnership firm can I used it ITR4S ?
thanks
Saurabh Maheshwari
(B.com,ACA)
(5918 Points)
Replied 13 May 2013
One important case relating to presumptive incomes:
In a case , Delhi High Court held that if an assessee fulfills all the conditions mentioned in section 44AD , the provisions of sections 28 to 44 of the Act would not be applicable for computation of its business income, and a sum equal to 8% of the gross t/over or gross receipts would be deemed as its business income. Further, under section 44AD(2), the assessee has the benefit of declaring before the Assessing Officer that the actual profits earned by it were less than 8%(by maintaing detailed a/cs and getting the same audited) but the Revenue/Deptt cannot take recourse of this sub-section to claim that the profits earned by the assessee were more than 8%.