Presumptive taxation on business treats a fixed share of turnover as taxable profits, limits deductions and triggers audit if income exceeds exemption. For an eligible assessee engaged in an eligible business a prescribed percentage of total turnover or gross receipts is deemed to be taxable business profits; deductions under sections 30-38 are treated as already given, firms may deduct partner salary and interest under section 40(b), written down value is computed as if depreciation were allowed, Chapter XVII C does not apply, and an assessee claiming lower profits whose total income exceeds the non taxable limit must keep books under section 44AA(2) and obtain an audit under section 44AB. Eligible assessee and eligible business are defined with specified exclusions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Presumptive taxation on business treats a fixed share of turnover as taxable profits, limits deductions and triggers audit if income exceeds exemption.
For an eligible assessee engaged in an eligible business a prescribed percentage of total turnover or gross receipts is deemed to be taxable business profits; deductions under sections 30-38 are treated as already given, firms may deduct partner salary and interest under section 40(b), written down value is computed as if depreciation were allowed, Chapter XVII C does not apply, and an assessee claiming lower profits whose total income exceeds the non taxable limit must keep books under section 44AA(2) and obtain an audit under section 44AB. Eligible assessee and eligible business are defined with specified exclusions.
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