Presumptive taxation

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CA Final Student
120 Points Posted on 25 October 2020
My taxable turnover is 22 lac i.e. exclusive of gst

and total turnover after gst is 25.96 lac i.e. after gst @ 18%

How should I calculate the income under 44AD?

Option:-
1)22 lac*8%
or
2)25.96 lac*8%


My doubt is-which option is correct option 1 or option 2?
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On 25 October 2020 at 19:00 Report
Replies (5)
Quick Summary
This discussion clarifies how to calculate income under Section 44AD of presumptive taxation. The key point is that the taxable turnover used for calculation should exclude the Goods and Services Tax (GST) component. Therefore, if your taxable turnover is 22 lac (exclusive of GST), you should use this figure for the 8% presumptive tax calculation, not the total turnover including GST.

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Practice
3235 Points Posted on 25 October 2020
Option 1 is correct
2 Reply
On 25 October 2020 at 19:17
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93 Points Posted on 25 October 2020
Calcln of turnover excl gst component
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On 25 October 2020 at 21:43
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493 Points Posted on 25 October 2020
Option 1 I correct
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On 25 October 2020 at 22:12
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Proprietor
38 Points Posted on 26 October 2020
Turnover excludes GST and hence option 1 is correct.
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On 26 October 2020 at 00:05
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CA Final Student
120 Points Posted on 26 October 2020
Ok thanks
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On 26 October 2020 at 08:25

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