What provision will apply if a person opt for the presumptive taxation scheme of section 44ADA and declares his income from profession at lower rate (i.e. less than 50%)?
FAQs on Tax on Presumptive Taxation Scheme
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Presumptive taxation scheme: declaring lower professional income triggers books maintenance and mandatory audit if taxable. Opting for the presumptive taxation scheme under section 44ADA and declaring professional income below the presumptive rate, if the declared income exceeds the maximum non-taxable amount, obliges the taxpayer to maintain books of account under section 44AA and to obtain an audit under section 44AB.
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 scheme: declaring lower professional income triggers books maintenance and mandatory audit if taxable.
Opting for the presumptive taxation scheme under section 44ADA and declaring professional income below the presumptive rate, if the declared income exceeds the maximum non-taxable amount, obliges the taxpayer to maintain books of account under section 44AA and to obtain an audit under section 44AB.
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