What is the presumptive taxation scheme?
- Section 44AD: Eligible small businesses
- Section 44ADA: Specified professionals
- Section 44AE: Businesses involving goods carriages
Section 44AD: For small businesses
- ₹2 crore in a financial year.
- ₹3 crore, where cash receipts do not exceed 5% of total turnover or gross receipts.
- Non-residents, LLPs or companies.
- Persons carrying on an agency business.
- Persons earning income through commission or brokerage, such as insurance agents.
- Persons engaged in specified professions covered by Section 44AA(1).
- Businesses crossing the applicable turnover limit.
Section 44ADA: For specified professionals
- Legal and medical professions
- Engineering or architecture
- Accountancy
- Technical consultancy
- Interior decoration
- Other professions notified by CBDT
Section 44AE: For goods carriage businesses
- ₹7,500 per month or part of a month for each goods vehicle other than a heavy goods vehicle.
- ₹1,000 per tonne of gross vehicle weight per month or part of a month for a heavy goods vehicle.
- A heavy goods vehicle is one with a gross vehicle weight exceeding 12,000 kg.
How is advance tax considered?
Disclaimer: This is only for informational and educational purposes. Please consult a qualified expert for the latest laws and regulations.