Presumptive taxation scheme was introduced by the Income Tax Act, 1961 to give relief to small taxpayers from the tedious job of maintaining books of account and from getting the accounts audited.
Any individuals, HUF or partnership firms who avail presumptive taxation scheme, has to declare income at a predefined rate without going through the cumbersome task of maintaining books of accounts and audit. Three presumptive taxation schemes available to small taxpayers as per income act u/s:
- 44AD for small businesses
- 44ADA for professionals
- 44AE for businesses engaged in plying, hiring or leasing of goods carriages
Non-Resident Indian (NRI) can not avail of the benefits of this scheme. Also, a person who has made any claim towards deduction under section 10A/10AA/10B/10BA or under section 80HH to 80RRB in the relevant year is not eligible for this scheme.
For more information read our blog here.
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