Being a professional, I adopt the PTS. How should I compute my taxable business income?

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• After adopting PTS and computing my taxable income at 50% of my receipts, can I claim any other deductions from such taxable income?

  No. The income computed at the given rate shall be the final taxable income on which you have to compute tax and no further deductions are allowed from this income.

• How to calculate taxable business income in case of a person adopting the presumptive taxation scheme of section 44AD?

  In case of a person adopting the PTS, the taxable business income shallbe 8% or more of the turnover or gross receipts of the eligible business for theyear. This rate shall be 6% for that portion of the turnover which is receivedthrough banking ...

• If I don’t opt for presumptive taxation scheme, how do I compute my taxable business income?

  For the purpose of computing taxable business income in the above manner, the you have to maintain books of account of the business, and income will be computed by deducting expenses from receipts as follows: Particulars Amount Turnover or gross ...

• What is meant by income from Business & Profession?

  Business includes any trade, commerce and manufacturing of goods with a purpose of making profit within the permissible laws. Profession includes services provided by the professionally qualified or technically qualified person according to their ...

• Presumptive Income

  Business or professional income is classified into 3 categories 1. 44 AD  44 AD is Business Income with gross turnover less than Rs 2 crores.  2. 44 ADA 44 ADA is Professional income (i.e doctor,CA,consultant) with gross receipt less than Rs 50 lac ...