Query

Tax planning 763 views 6 replies

 

Hi Guys..,,
For A Y 2011-12 Sec 44AD allows all small business to compute their net taxable income on presumptive basis i.e. 8% of Turnover less than 60lacs.
 
Does this business include Profession because " Business includes Profession too" or we have to go by literal meaning of business i.e. business only...
because if we take professional having turnover less than 60 lacs under this sec. then there will be controversy regarding tax audit under sec 44AB (limit 15 lacs). as per sec 44AD which is not required because turnover is less than 60lacs. 
Please Suggest & Thanks
Replies (6)

Dear Chirag.

 

Presumptive Taxation Scheme 44AD Only For Constructor Business Man.

Not Applicable to Professionals.

sec 44 AD is applicable for civil construction and labour contractor business only with turnover less than 40 lakhs.....not for professionals

Section 44AD applicable only for " Computing Profits and gains of Business of Civil Construction "

how a professional covered under his

All the people who answered this question, please see before answering, wht the person is actually asking..

 

DONT ACT IDIOTIC.

 

 

He has asked for AY 2011-12. Not 2010-11...

 

And the answer is, it does not cover "professions" and covers all the businesses except plying of trucks.

 

For amended 44AD from AY 2011-12 (Finance No. 2 Act, 2009), clicke below link...

 

https://www.etaxindia.org/2010/09/substituted-section-44ad-incorporated-by-the-finance-no-2-act-2009-applicable-from-a-y-2011-12.html

 

See the eligible business definition there.

 

Regards.

can any one tell the best way to present the answer in final ( both practical and theory)


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