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

2. 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.

3. 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.

4. 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.

5. 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.

6. 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 allowed
From A.Y not allowed
Presumptive Tax by CA. M. Lakshmanan, Madurai.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 44ADA Small Professionals
Estimated Income:
50% of Gross Receipts as professional Income
Other income – normal course
Presumptive Tax by CA. M. Lakshmanan, Madurai.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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 – Rs. 7,500/- p.m. or part.
For A.Y
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.

20. 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.

21. 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.

22. 44AE Truck Owners Deduction under Chapter VI A allowable:
Deductions u.s 80C to 80U are allowed
Presumptive Tax by CA. M. Lakshmanan, Madurai.

23. 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.

24. 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.

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