12
GO BACK TO INDEX

Section – 44-AD(1) - presumptive taxation

 

Existing provisions provide for presumptive taxation in the case of eligible assessee having turnover of less than Rs. 2,00,00,000/-. A sum equal to 8% to the turnover or as the case may be a sum higher than the said sum declared by the assessee will be deemed to be the profits chargeable to tax.

It is proposed to reduce the existing rate of deemed income from 8% to 6% of the gross receipt received by account payee cheque or use of electronic clearing system through bank account.

 

However, the existing rate of 8% will apply in respect of total turnover received in any other mode. 

 

The amendment will be effective from 1st April 2017.


GO BACK TO INDEX

17