Who is eligible to take advantage of the PTS of section 44AE and which business is eligible for the PTS under section 44AE?

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• Who can take advantage of the presumptive taxation scheme of section 44ADA?

  Any person resident in India, engaged in the following professionsand having a turnover of Rs.50 lacs or less can take advantage of PTS. Legal Medical Engineering or architectural Accountancy Technical consultancy Interior decoration Any other ...

• 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 ...

• I have sold a building used for business which was depreciable and the depreciation is claimed by me on the same. Am I eligible for benefits under section 54EC?

  Yes. If you have held the asset beyond a period of five years, you are eligible to claim benefits even though the depreciation on the same was claimed by you. This view is supported by numerous decisions of higher judiciary.

• If I adopt the PTS for a small business initially, but then opt out of PTS in one of the subsequent five years, what will be the consequences?

  Once you opt for PTS then you have to continue with it for the next five years if your turnover is less than 2 crore rupees. Even after having a turnover of less than 2 crores in any of the subsequent five years if you declare profits lesser than 8% ...

• 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.