Profits & gains of business or profession --- revision

vipul jain (EFFORTS NEVER FAIL) (2894 Points)

26 September 2011  

FAST TRACK ----- PGBP

REVISION TIME ---- IMPORTANT PROVISIONS

 

 

PRESUMPTIVE TAXATION 

PARTICULAR SEC. 44AD SEC. 44AE
Eligible Business Any business other than business referred in sec. 44AE Business of plying, hiring, or leasing of goods carriage
Eligible Assessee

Resident:-

  • Individual
  • HUF
  • Firm
  • Except LLP



 Any assessee
Income euuals to -- 8% of total turnover or gross receipts of the assessee

For heavy Goods vehicles--

Rs. 5,000pm or part of a month during which vehicle is owned by assessee.

For other than above--

Rs. 4,500pm or part of a month during which vehicle is owned by assessee.
Not applicable in case --

Turnover/Gross receipts exceed60Lacs

or

Assessee claims income from said business to be lowe than 8% computesd as above

Assessee owns more than 10 goods carriage at any time during the year.

or

Assessee claims income from said business to be lowe than computesd as above
Deduction u/c VI-A Deduction of this business income shall not be allowed but other deductions can be claimed from this income. This income shall be aggregated with other incomes and deductions u/c VI-A shall be allowed.
Advance Tax provisions Shall not be applicable for such business Shall be applicable
Deduction or disallowance u/s 30-38 All deduction or disallowance u/s 30-38 shall be deemed to be allowed i.e. no seperate deduction shall be allowed for nay expense incurred for earning such income. All deduction or disallowance u/s 30-38 shall be deemed to be allowed i.e. no seperate deduction shall be allowed for nay expense incurred for earning such income.
Deduction u/s 40(b) Deduction for interest and salary u/s 40(b) to partners shall be allowed from the income computed above. Deduction for interest and salary u/s 40(b) to partners shall be allowed from the income computed above.
Depreciation Dep. shall be deemed to have been allowed & accordingly WDV of next year shall be calculated. Dep. shall be deemed to have been allowed & accordingly WDV of next year shall be calculated.
Applicability of SEC. 44AA & 44AB

SEC. 44AA & 44AB shall not be applicable on such business.

If assessee claims that profits are lower than as computed above, he shall maintain boks of accounts as prescribed u/s 44AA and get his accounts audited u/s 44AB

 If assessee claims that profits are lower than as computed above, he shall maintain boks of accounts as prescribed u/s 44AA and get his accounts audited u/s 44AB