Section 44AD of ITA, 1961 : Section 44Ad: Special Provision For Computing Profits And Gains Of Business On Presumptive Basis

Explanation using Example

Imagine a scenario where Mr. Sharma runs a small garment manufacturing business. His business is a partnership firm and he is a resident of India. For the financial year 2022-23, Mr. Sharma's business had a total turnover of ₹1.5 crores. Mr. Sharma decides to opt for the presumptive taxation scheme under Section 44AD of the Income-tax Act, 1961.

Since his turnover is less than ₹2 crores and he is an eligible assessee, he can declare 8% of his turnover as his income, which would be ₹12 lakhs (8% of ₹1.5 crores). However, ...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.