The presumptive taxation scheme of section 44AD is available to resident individuals, Hindu Undivided Families (HUFs), and partnership firms (not limited liability partnership firms) with a turnover of up to Rs 2 crore in a financial year.
Further, The taxpayer should not have claimed deductions under Sections 10A, 10AA, 10B, 10BA, or Chapter VI-A under the head 'C' (deductions in respect of certain incomes).
The taxpayer should not
a. carry on Business of plying, hiring or leasing of goods carriages referred to in section 44AE.
b. be a person who is carrying on any agency business.
c. be a person who is earning income in the nature of commission or brokerage
Further, The taxpayer should not have claimed deductions under Sections 10A, 10AA, 10B, 10BA, or Chapter VI-A under the head 'C' (deductions in respect of certain incomes).
The taxpayer should not
a. carry on Business of plying, hiring or leasing of goods carriages referred to in section 44AE.
b. be a person who is carrying on any agency business.
c. be a person who is earning income in the nature of commission or brokerage
Once a taxpayer chooses to be taxed under this scheme, they are required to continue to be taxed under this scheme for the next 5 consecutive years, unless they cease to carry on the specified business or profession. If the taxpayer opts out of the scheme before the completion of the block period, they will not be allowed to opt for presumptive taxation under this section for the next 5 years.
Further, Professional Income covered under taxation scheme u/s 44ADA is not eligible for claiming the said Income u/s 44AD.
Further, Professional Income covered under taxation scheme u/s 44ADA is not eligible for claiming the said Income u/s 44AD.
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