substituting a new section 44AD

1634 views 5 replies

MAHESHtiwari

CHARTERED ACCOUNTANT

25 Points Posted on 09 July 2009

It has proposed to expand the scope of presumptive taxation to all businesses by substituting a new section 44AD. and applicable to assessee having more than 40 lacks turnover .

presumptive income shuld be @ 8% of gross turnover or receipt.

My question is what does mean by income whether "Taxable income " or cash income or income before or after distribution of remuneration , interest to partners in case of partnership firm becasue of rate of 8% is mutch higher in case of higher turnover particularly in case of tradiing concern.

Replies (5)

Krutesh Patel

ACA

727 Points Posted on 10 July 2009

Hello friend,

Income means taxable income under head Income from Business or Profession after allowing deduction from sec 30 to 37. However in case of partnership firm you can claim deduction of interest and remunaration paid to partner subject to provisions of act. No other deduction is available.

Arun Gupta

162 Points Posted on 10 July 2009

SIR 44AD WILL APPLICABLE ON LESS THAN 40LACS TURNOVER NOT MORE THAN 40 LACS

Ca Tushar Bansal

15 Points Posted on 12 July 2009

Dear sir

Amendment in Sec 44AD will provide professional opurtunities for young CA's as now many more assessee's doing any kind of business (earlier limited to retail traders) will have to undergo audit if they are showing net profit before partner's interest and salary in case of Partnership firms lesser than 8 % of turnover which will be covering large number in assessee's in smaller cities having turnover then 40 Lakhs

so thanks Mr. FM

Thanks & Regards

CA Tushar Bansal

Partner

Vipul Tushar & Co

103, Puneet Vrindawan, Sanjay Place

Agra

Ph: 0562-4000812, email : tusharbansal29 @ rediffmail.com