Presumptive Taxation u/s 44AD

The presumptive taxation scheme, so far restricted to civil construction and retail trade, would now cover all small businesses with total turnover/gross receipts of up to Rs.40 lakh. Section 44AD has been substituted, to inclu   de within its scope all such businesses (except the business of plying, hiring and leasing goods carriages covered under section 44AE). Consequently, section. 44AF dealing with presumptive taxation for retail trade would not be applicable w.e.f. A.Y.2011-12 since retail trade would also fall within the scope of section 44AD.

  Thus, only the individuals or HUF or firms (doesnot include LLP) doing business whose gross receipts or turnover during PY 2010-2011 is less than Rs. 60 lakhs would declare his income based on presumption taxation  @ 8% and this 8% is deemed to be profit and gains from business.

Hope this solves ur query.

Regards,

Manoj

A person can declare an income lower than the presumptive taxation limit but for it, he/it will have to get his accounts audited even if his income is less than 60 Lacs.

What about remuneration and interest paid by a firm to its partners???

Deduction for the same is available or not???

Remuneration and interest deduction will be available in firm's hand......