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Segment 44ADA – Typical guides of accounts are to become taken care of and have them audited if revenue exceeds fundamental exemption limit.
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Hence the taxpayer can opt for that presumptive taxation plan under segment 44ADA along with the taxable cash flow chargeable is 50% of the overall receipts.
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What's presumptive taxation? A presumptive taxation is really a technique during which a authorities assumes a particular share of the turnover/gross receipts as your taxable revenue no matter the costs incurred.
six% of whole turnover or gross receipts of the tax yr obtained by account payee cheque/lender draft, ECS through bank account on or before due date of submitting the return of profits
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In the above mentioned illustration, the overall receipt is get more info underneath the revised/improved presumptive Restrict of Rs. seventy five lakh plus the cash receipt is less than five% of the entire receipts.
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