Small Business – 44AD

Section 44AD – For Business

Presumptive Scheme to be opted for atleast 5 years (A.Y. 2018-19)

  • Your turnover must be less than Rs 2 crores
  • Your NET income shall be considered as 8% of your turnover (net income will be considered 6% in case of digital/Banking receipts)
  • You don’t have to maintain accounting records
  • You have to pay Only One Advance tax by 15th March of that particular financial year
  • You don’t have to get your accounting records audited
  • You can file your tax return in ITR-4 a much shorter and simpler form than ITR-3

 

 

Section 44ADA – For Professionals

Presumptive Scheme to be opted for atleast 5 years (A.Y. 2018-19)

Specified profession
  • Legal
  • Medical
  • Engineering
  • Architecture
  • Accountancy
  • Technical consultancy
  • Interior decoration
  • Other notified professionals
  • Authorized representatives
  • Film Artists
  • Certain sports related persons o Company Secretaries and o Information technology

 

The assessee above has to show Higher of the following Income  

• 50% of the gross receipts from profession (OR)

• Income from profession offered by the assessee

Benefit : Showing income under presumptive basis, Assessee is not required to maintain books of account , neither he is required to get account audited.

 

However if the assessee wants to show the income less than above then he can do so subject to maintenance of books of account and audit