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.