Section 44AD for Income Tax in India | Details about section 44AD

44AD Section

06 December 2014

44AD: Special provision for computing profits and gains of business on presumptive basis. Section 44AD deems the net profit rate at 8% in cases where accounts are not maintained and turnover is up to Rs. 40.00 lacs. This however, does not mean that profit will lower when the turnover is more than Rs. 40.00 lacs. […]

Read the full story

Posted in 44AD0 Comments

44AD Conflict Provisions

04 December 2014

Vide Finance Bill 2011, the Section 44AD has been revised and it is applicable to all businesses instead of only to civil construction business. On the other outset, limit of tax audit u/s 44AB is increased to Rs. 60 lakh from earlier limit of Rs. 40 lakh for financial year 2011-12 and been further increased […]

Read the full story

Posted in 44AD0 Comments

Payment of Advance Tax

02 December 2014

Sub‐Section(4) An assessee opting for the scheme shall be exempted from payment of advance tax related to such business. Issue:  How to calculate Advance Tax where the assessee is having both income from eligible business & other income:  Presumptive income is Rs 4 lakhs & other income is Rs 8 lakhs  In this case, whether […]

Read the full story

Posted in 44AD0 Comments

WDV of assets of the eligible business

30 November 2014

Sub‐Section(3) provides that, the WDV of any asset of an eligible business shall be deemed to have been calculated as if the assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years. Deemed deduction of depreciation is assumed for the purpose of arriving […]

Read the full story

Posted in 44AD0 Comments

Provisions of the section 44AD

27 November 2014

Sub‐Section (1) : Notwithstanding anything to the contrary contained in sections 28 to 43C, In the case of an eligible assessee engaged in an eligible business, A sum equal to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business, A sum higher […]

Read the full story

Posted in 44AD0 Comments

44AD Applicability

25 November 2014

The amended provisions of this section are applicable with effect from 1st April, 2011 and will accordingly apply in relation to assessment year 2011-12 and subsequent assessment years. The section heading was as Profits and gains of business of civil construction whereby it was applicable to only such assessees who were engaged in business of […]

Read the full story

Posted in 44AD0 Comments

Gross Receipts in 44AD Section

23 November 2014

“Gross Receipts” is not defined in the Act • It includes all the receipts in cash or kind. • Arising from carrying on of the business. • Which is assessable as business income under the act. • U/s 145(1) “Sales”, “Turnover” or ”Gross Receipts” computes either on cash or mercantile system. As per the Guidance […]

Read the full story

Posted in 44AD0 Comments

44AD Comparision with other Provisions

21 November 2014

Difference Between Earlier provisions and Amended provisions- At Glance  S.N.  Basis  Upto the A.Y.2010-11 From the A.Y.2011-12 1  Eligible assessee  Individual, HUF, AOP, BOI, firm, Co., Co-operative society or any other person.  Individuals, HUFs & partnerships firms (not being a LLP). 2  Eligible business  Civil construction or supply of labour for civil construction.  Any business […]

Read the full story

Posted in 44AD0 Comments

Section 44AD(5) determination Issues

19 November 2014

Income from Eligible Business > 8% of Turnover and Total Income Exceeds Exemption Limit ===44AD applicable. Income from Eligible Business = 8% of Turnover and Total Income Exceeds Exemption Limit ===44AD applicable. Income from Eligible Business claimed to be < 8% and Total Income Exceeds Exemption Limit =44AA & 44AB applicable. Income from Eligible Business […]

Read the full story

Posted in 44AD0 Comments

Option to declare lower income than Deemed Income

17 November 2014

Sub‐Section (5) If an assessee claims that his income is lower than income deemed under section 44AD(1) and his total income exceeds the maximum amount not chargeable to tax. Then, He shall have to maintain the books of accounts related to such business u/s 44AA. He is also required to get them audited under section […]

Read the full story

Posted in 44AD0 Comments

Page 1 of 212

Categories