Presumptive Taxation scheme under Section 44AD

Deepak Ji you can avail Presumptive Taxation scheme under Section 44AD because Income Tax and GST are separate , there is no linkage between both as on date, however its under proposal to restrict 44AD up to turnover of Rs. 75 Lakhs

Yes. You can opt for presumptive taxation under 44AD whereby you can assume your profits as 8% of the total turnover and pay taxes accordingly. Once you compute profits by applying such percentage, you cannot claim any other expenses or depreciation.

Also, if your business transactions are done through banking channels, the rate as specified above shall be 6%.

Hi Deepak,

Yes, You can opt for section 44AD. Please note that this option has to be selected at least for next 5 years. You can't go int normal taxation for next 5 year, if eligible for presumptive taxation.

The features of the presumptive taxation will be as follows:

1 Your taxable income shall be considered as 8% of your turnover (net income will be considered 6% in case of digital receipts)

2. You don’t have to maintain accounting records

You don’t have to pay advance tax (from FY 16-17, assessee opting for presumptive taxation has to pay 100% advance tax by 15th March of that particular financial year)

3 You don’t have to get your accounting records audited.

4. You can file your tax return in ITR-4S.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hello Deepk,

As per section 44AD of the Income Txa Act, if your turnover is less than 2 crore, then your income will be presumed @8%.

Whereas as Sec 10 of GST Act, you have the opion to go for composition scheme if ypur turnover less than 75 lakhs.. This option is not mandatory.

Both are altogether different Act, and you are eligible for presumptive taxation

In GST yes.. but in Income tax, as you are going to presumputive taxation it is not questionable

Yes..It is questionable.

show diff purchase quantity as purchase from unregistered dealers or at the time of scrutiny (if any) you may face problem for the same ,

you u can

Such transactions could be questionable.

Yes, you can purchase such assets in proprietorship concern.

Yes, you can

Hello Sir,

Yes, you can continue with normal scheme under GST but obviously the Assessing Officer may ask you to produce your books of accounts in case he comes to know that you are under regular scheme in GST.

Yes, you can purchase land as well as car in your proprietorship firm.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Hi,

Yes, you can buy such assets in properitorship firm.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hi Deepak,

GST and Income-tax Acts are different and you can claim presumptive taxation under the Income-tax Act. However, you will have to satisfy the conditions for claiming presumptive taxation.

Regarding the difference in quantity, it might be a hassle if the officer asks you to produce your books of account.

You can purchase land as well as a car in your proprietorship.

Trust this clarifies.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Dear Tax Payer,

You are eligible for presumptive taxation provided your turnover from eligible business is less than Rs. 2 crore. Please note that turnover includes your GST also.

Eligible Business means, business other than;

(i) Carrying on profession as referred to in sub-section (1) of section 44AA;

(ii) Earning income in the nature of commission or brokerage; or

(iii) Carrying on any agency business.

Regards,

CA. Rajeev P T