PREUMPTIVE TAX under Income Tax BY C.A. M. LAKSHMANAN, B.COM., F.C.A.,D.I.S.A.(ICAI).,FIIISLA.,

INTRODUCTION For Small Business men, Traders and Professionals: 44AD - Business – Turnover up to Rs. 2 Crores – 44ADA – Professionals – Gross Receipts up to Rs. 50 L 44AE – Truck owners up to 10 Trucks For Co-operative Societies: 44DDB – Reorganization Co-operative Societies Presumptive Tax by CA. M. Lakshmanan, Madurai.

INTRODUCTION –Contd., For Non-Residents 44B - Shipping 44BB – Exploration of Oils & Minerals. 44BBA – Operation of Aircraft 44BBB – Civil Construction, Power Project 44 C – Deduction of Head Office Expenses 44D & 44DA – Royalty or Fees for technical services Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AD Small Business Assessees Applicability Resident Individuals, Resident HUFs, Resident Partnership Firms (not LLPs) engaged in eligible business. Eligible Business does not Include: Business of plying Trucks covered u.s 44AE Profession referred to u.s 44ADA Commission or Brokerage Agency Business Turnover more than Rs. 2 Crores Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AD Small Business Assessees ESTIMATED INCOME 6% of Turnover received by a/c payee cheque, bank draft or ECS before the due date of filing the Return of Income. 8% of Turnover not covered above. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AD Small Business Assessees Non Admissibility of Business Deductions All deductions from sec 30 to 38 including Depreciation deemed to have been allowed No Deduction of Interest and Salary to Partners Up to A.Y. 2016-17 allowed From A.Y. 2017-18 not allowed Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AD Small Business Assessees Deduction under Chapter VI A allowable Deduction u.s 80C to 80 U are allowed Books of Account need not be maintained No Books – No Audit Basic Records to be maintained – Turnover – Receipt by cash or other mode – WDV. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AD Small Business Assessees Lower Income may be declared If declared in subsequent year with audited accounts – not eligible to claim benefit u.s. 44AD for subsequent five years. If the total income exceeds the basic limit accounts are to be audited. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AD Small Business Assessees Tax Liability and Advance Tax Tax is be paid at applicable rates. Advance Tax to be paid in one instalment on 15th March. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44ADA Small Professionals Applicability Resident Assessee – Profession referred to in Section 44AA(1) Gross Receipts do not exceed Rs. 50 Lakhs Presumptive Tax by CA. M. Lakshmanan, Madurai.

44ADA Small Professionals Profession referred to in Section 44AA(1) 1 . Legal 5 Accountancy 2Medical 6. Technical Consultancy 3. Engineering 7. Interior Decoration 4. Architecture 8. Other notified Professions Presumptive Tax by CA. M. Lakshmanan, Madurai.

44ADA Small Professionals Other notified Professions: a. Authorised Representative b. Film Artiste c. Company Secretary d. Information Technology Presumptive Tax by CA. M. Lakshmanan, Madurai.

44ADA Small Professionals Estimated Income: 50% of Gross Receipts as professional Income Other income – normal course Presumptive Tax by CA. M. Lakshmanan, Madurai.

44ADA Small Professionals Non Admissibility of business Dedutions: All Deductions u.s 30 to 38 including Depreciation deemed to have been allowed. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44ADA Small Professionals No Deduction of Interest and Salary to Partners: Scheme is silent – Specifically allowed u.s 44 AE and not allowed u.s 44AD. If paid not allowed in firm’s hand and assessed in partner’s hand? Presumptive Tax by CA. M. Lakshmanan, Madurai.

44ADA Small Professionals Deduction under Chapter VI A allowable: Deduction u.s 80 C to 80 U are allowed. Books of Account need not be maintained No Books – No Audit Basic Records to be maintained – Turnover – WDV. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44ADA Small Professionals Deduction under Chapter VI A allowable: Deduction u.s 80 C to 80 U are allowed. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44ADA Small Professionals Tax Liability and Advance Tax Tax to be paid at applicable rates Advance Tax to be paid in one instalment on 15th March. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AE Truck Owners Applicabilty Estimated Income: Plying, Leasing or hiring of Trucks owning not more than 10 trucks at any time during the year. Estimated Income: For A.Y. 2018-19 – Rs. 7,500/- p.m. or part. For A.Y. 2019-20 For Heavy Goods Vehicle – Rs. 1,000 p.m. per ton For others Rs. 7,500/- p.m. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AE Truck Owners Non Admissibility of business Dedutions: All Deductions u.s 30 to 38 including Depreciation deemed to have been allowed. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AE Truck Owners Deduction of Interest and Salary to Partners: Allowed subject to limits specified u.s 40b Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AE Truck Owners Deduction under Chapter VI A allowable: Deductions u.s 80C to 80U are allowed Presumptive Tax by CA. M. Lakshmanan, Madurai.

Lower Income may be declared in subsequent year – no restrictions. 44AE Truck Owners Lower Income may be declared in subsequent year – no restrictions. No Books – No Audit Basic Records to be maintained – Turnover –WDV. Presumptive Tax by CA. M. Lakshmanan, Madurai.

44AE Truck Owners Tax Liability and Advance Tax To be paid at applicable rates as per normal provisions.- No concession as in other two schemes. Presumptive Tax by CA. M. Lakshmanan, Madurai.

Thank you Any Questions? Presumptive Tax by CA. M. Lakshmanan, Madurai.