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What would happen if I am running business from SEZ and adopted Presumptive scheme?

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Rajesh

entrepreneur

27 Points Posted on 10 January 2023

If someone adopted a Presumptive taxation and having a turnover of less than 2 crores and having 30 lakh profit then do AMT will interfere with tax computation presumptive rate ?

1) If calculated the Normal way on a normal tax slab of 30 Lakh then 6,63,000 is tax liability

2) If using AMT 15% of 30 Lakh then 4,50,000 (so normal tax is higher so 6,63,000 will be considered as AMT)

3) If followed Presumptive Scheme then tax liability will be 0 because 6% of 30 Lakh is non-taxable

So what tax liability will be considered ?

And if I am generating this income from the special economic zone (10AA)? Does this mean that even if my income will entitle to 100% tax-free but still due to AMT rule I have to Pay tax?

Replies (2)

Quick Summary

This discussion explores the tax implications for a business operating from a Special Economic Zone (SEZ) and utilising the presumptive taxation scheme. It questions whether the Alternative Minimum Tax (AMT) would override the tax benefits of the presumptive scheme, particularly when income is generated from an SEZ under section 10AA. The core concern is whether AMT rules could force tax payment even if the income is otherwise 100% tax-free.

Sanjay

hhgh

0 Points Posted on 10 January 2023

If a taxpayer has adopted the presumptive taxation scheme and has a turnover of less than 2 crores and a profit of 30 lakh, the AMT will not interfere with the tax computation using the presumptive rate.