income tax

[AMIT KUMAR]

Dear sir

income tax u/s 44AF and 44AD deduction 80 C 1,00,000/- claim A.Y. 2011-12 and A.Y 2012-13

[CA Rachit Agarwal]

Income Tax u/s 44AF-

AY 2011-12: Business Profit @ 5% will be chargeable.

AY 2012-13: In-operative (Will come under 44AD)

Income Tax u/s 44AD-

AY 2011-12- Only business of civil construction or supply of labour for civil construction

AY 2012-13- Any business including supply of labour, sale of goods and others. Contents of 44AF wouldcome under this section and minimum profit to be filed @ 8%

For further clarifications read Finance Act No-2, 2009

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AI Summary

Presumptive taxation: shift of 44AF into 44AD broadens business coverage and raises minimum deemed profit requirement.
Presumptive taxation treatment shifted from the earlier regime to the consolidated presumptive provision: in the earlier year the rules applied only to civil construction businesses and supply of labour for civil construction under the then-operative provision, while in the later year the inoperative provision's content was subsumed into the broader presumptive regime covering any business, including supply of labour and sale of goods, requiring reporting of income based on the prescribed minimum deemed profit. The advisory noted a separate query on claiming an income tax deduction under 80C.