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

241 views 2 replies

Rajesh

entrepreneur

27 Points Joined 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)

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.