{"id":11219,"date":"2022-07-20T19:07:42","date_gmt":"2022-07-20T19:07:42","guid":{"rendered":"https:\/\/sattaexpress.co.in\/index.php\/2022\/07\/20\/44ad-section-presumptive-income-under-business-explained-by-ca-mukul-gupta\/"},"modified":"2022-07-20T19:07:42","modified_gmt":"2022-07-20T19:07:42","slug":"44ad-section-presumptive-income-under-business-explained-by-ca-mukul-gupta","status":"publish","type":"post","link":"https:\/\/sattaexpress.co.in\/index.php\/2022\/07\/20\/44ad-section-presumptive-income-under-business-explained-by-ca-mukul-gupta\/","title":{"rendered":"44AD Section\u2014Presumptive Income under Business \u2013 Explained by Ca Mukul Gupta"},"content":{"rendered":"
\"\"<\/div>\n

Ca Mukul Gupta Explains 44AD Section\u2014Presumptive Income under Business<\/p>\n

1. Applicability of section<\/p>\n

a. Only applicable to individuals , partnership firm and HUF which means no other assessee is entitled to take benefits of section 44AD.<\/p>\n

2. Non applicability of section -The section is not applicable to various sources of income like as follows <\/p>\n

a. Income from Commission business<\/p>\n

b. Income from Agency business<\/p>\n

c. Income from Professional Business<\/p>\n

d. Plying , hiring, goods transportation source of income Further, the section 44AD is also not applicable to LLP and body corporates assessees.<\/div>\n<\/p>\n

3. Minimum net profit — 6% or 8 % ?As per section, cash sales means any turnover whose payment has received or receivable in cash then the assessee need to show minimum 8% of cash turnover as net profit and pay income tax thereon.For e.g. If total cash sales is Rs. 10,00,000\/- then net profit will be Rs. 60,000\/- only and income tax on those 60,000\/- only.<\/div>\n<\/p>\n

Similarly the minimum net profit to be considered 6% of total sales whose payment is received or receivable via any digital mode.<\/span><\/p>\n

Further there is no bar of showing actual profit as per books of account if the assessee declares profit less than 6% or 8% then assessee need to get his account audited or if assessee declares more than 6% or 8% no issue at all.<\/span><\/p>\n

4. Do not change on year to year basisNow once business income filed u\/s 44Ad , the individual is restricted to file his succeeding income tax return for the next consecutive 5 year to 44Ad only and if he wishes to opt out then he has to get his accounts audited from a chartered accountant.<\/span><\/p>\n

5. Not required to maintain books of accounts.<\/span><\/p>\n

Although books of accounts are not necessarily to maintain for those assessee who are filing their income tax return u\/s 44AD but while filing the income tax return assessee mandatorily need to declare the following balances as at 31st March of the filing year.<\/span><\/p>\n

1. Sundry debtors,<\/p>\n

2. Sundry creditors,<\/p>\n

3. Cash balance and<\/p>\n

4. closing stock<\/p>\n

This is the summary of section 44AD as per our understanding.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"

Ca Mukul Gupta Explains 44AD Section\u2014Presumptive Income under Business 1. Applicability of section a. Only applicable to individuals , partnership…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[11],"class_list":["post-11219","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/sattaexpress.co.in\/index.php\/wp-json\/wp\/v2\/posts\/11219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sattaexpress.co.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sattaexpress.co.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sattaexpress.co.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sattaexpress.co.in\/index.php\/wp-json\/wp\/v2\/comments?post=11219"}],"version-history":[{"count":0,"href":"https:\/\/sattaexpress.co.in\/index.php\/wp-json\/wp\/v2\/posts\/11219\/revisions"}],"wp:attachment":[{"href":"https:\/\/sattaexpress.co.in\/index.php\/wp-json\/wp\/v2\/media?parent=11219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sattaexpress.co.in\/index.php\/wp-json\/wp\/v2\/categories?post=11219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sattaexpress.co.in\/index.php\/wp-json\/wp\/v2\/tags?post=11219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}