Which businesses cannot avail presumptive taxation scheme?

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• 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 a person engaged in a profession adopt the presumptive taxation scheme of section 44AD?

  No. He has to adopt the presumptive taxation scheme as given in section 44ADA and not in section 44AD.

• 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 a person having a total turnover for the year more than Rs. 2,00,00,000 adopt the presumptive taxation scheme of section 44AD?

  No, any person having a total turnover more than Rs. 2,00,00,000 for the year cannot adopt the presumptive taxation scheme of section 44AD.

• 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 ...