If I adopt the presumptive taxation scheme of section 44AE, then am I liable to pay advance tax in respect of income from business covered under section 44AE?
Yes. In case of PTS for transporters, advance tax needs to be paid in all quarters and not only in last quarter unlike the PTS for section 44AD and 44ADA.
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If I adopt the presumptive taxation scheme of section 44AD, then am I liable to pay advance tax on income from business covered under section 44AD?
You are not required to pay advance tax in all the four quarters of a financial year but you are required to pay advance tax only once i.e. on or before 15th March of a financial year. However, any amount paid by way of advance tax on or before 31st ...
Who should pay advance tax?
Any person having a tax liability of more than ₹10,000 in a financial year after deduction of TDS, has to pay advance tax. Advance tax must be paid by all taxpayers; salaried, freelancers, and businesses. Businessmen and professionals who have opted ...
What is the legal framework of presumptive taxation scheme?
The presumptive taxation scheme is prescribed in following sections of Income tax Act. Section Eligible business covered 44AD Small business having a turnover of less than Rs.2 crores 44ADA Taxpayers engaged in any profession 44AE Small transporters ...
Can an insurance agent adopt the presumptive taxation scheme of section 44AD?
A person who is earning income in the nature of commission or brokerage cannot adopt the presumptive taxation scheme of section 44AD. Insurance agents earn income by way of commission. Hence, as per section 44AD, they cannot adopt the presumptive ...
Could a person owning more than 10 goods vehicles adopt the presumptive taxation scheme of section 44AE?
According to PTS scheme of section 44AE, the income will be computed at the rate of Rs. 7,500 per vehicle per month. In this case the taxpayer is eligible for further deductions from the presumptive income declaration. As per section 44AE, no ...