queries in profits and gains of business or profession

Definition of “block of assets” as per section 2(11) to apply for all purposes of the Income-tax Act [Section 32(1)] (i) At present, the term "block of assets" has been defined both in section 2(11) and in Explanation 3 to section 32(1). Since the definitions are not exactly the same in the two sections, it causes difficulty in interpretation.

 In order to remove this difficulty, Explanation 3 of section 32(1) has been amended to delete the definition of “block of assets” provided therein. Hereafter, Explanation 3 to section 32(1) would define only the meaning of “assets” and not “block of assets”. As a result, the meaning of “block of assets” has to be derived only from section 2(11). (Effective from A.Y.2010-11)

So refer only SEC 2(11) for definition of block of assets.

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 include

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.

Pls also refer the attached file. It would help u in exams.

Thnx

Shikha