Let me tell you about Section 44AD. The Government of India included a simplified system for enterprises to minimise the tax burden and provide relief to taxpayers from many compliances. Companies that choose this presumptive tax scheme are not required to keep regular financial records. According to the Income Tax Act of 1961, the presumptive plan permits taxpayers to disclose income at a defined rate. As a result, organisations save time, effort, and money on compliance. I have mentioned some facts below about what is 44AD in income tax.
What is 44AD in income tax in Hindi?
प्रिज्युम जिसका अर्थ मानना होता है. और टैक्सेशन के तात्पर्य इनकम पर चुकाये जाने वाला टैक्स. इसका मतलब यह होता है व्यक्ति अपनी इनकम के अनुसार स्वयं यह मान लेता है कि लगभग इतना टैक्स बनेगा तथा वह अपने इनकम टैक्स रिटर्न मे वह टैक्स सरकार को चुकायेगा. जिसमे बुक्स ऑफ अकाउंट्स मेंटेन नही करना पड़ता ना ही ऑडिट कराने की जरुरत है. यह स्कीम खासतौर पर छोटे बिजनेस या छोटे टैक्सपेयर के लिये होती है.
Eligibility to file a return under section 44AD:
1) Individuals, HUFs, and Partnership businesses residing in India that have not claimed exclusions under sections 10A/ 10AA / 10B/ 10BA (deductions of profits derived from the export of articles or things)
2) The preceding year's gross receipts of the company or individual should not exceed 2 crore ( or 5 crores subject to minimum criteria of digital transaction of more than 95 percent of total receipts and payments in budget 2020)
3) These restrictions are not applicable to individuals or businesses engaged in the business of transporting or hiring freight carriages.
4) If a company or individual chooses the presumptive taxation plan, they must disclose a minimum of 8% profit (or 6% in the case of digital receipts).
Section 44AD's Characteristics:
1) If your gross turnover is less than Rs 1 crore, the tax payable under Section 44AD is determined at 8% of your gross revenue for the financial year. According to Budget 2020, this ceiling has been raised to Rs 2 crore.
2) the provisions of this section apply to any business or profession with the exception of those listed in Section 44AE.
3) The income estimated under this section will be taxed according to the slab rates set out in the Income Tax Act.
4) If you claim deductions under this section will be barred from claiming any further expenses or losses, excluding interest and payments to partners.
Looks like you got an idea about what is 44AD in income tax.
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What is 44AD in income tax?
kashish
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2022-04-11T17:56:46+00:00 2022-04-11T17:56:47+00:00Comment
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