Presumptive Income

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• Which businesses cannot avail presumptive taxation scheme?

  The following businesses are not eligible for presumptive taxation scheme: A person carrying out any agency business A person earning income of commission or brokerage Any business having total turnover or gross receipts exceeding ₹2 crore Any ...

• 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 ...

• Can I claim any further deductions from the income computed at 6% or 8% on a presumptive basis?

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

• 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 ...