TaxTMI 
TaxTMI 
Special provision for computing profits and gains of business on presumptive basis.
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....usiness chargeable to tax under the head "Profits and gains of business or profession". ^11[Provided that this sub-section shall have effect as if for the words "eight per cent.", the words "six per cent." had been substituted, in respect of the amount of total turnover or gross receipts which is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a ^12[bank account or through such other electronic mode as may be prescribed] during the previous year or before the due date specified in sub-section (1) of section 139 in respect of that previous year.] (2) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of sub-section (1), be deemed to h....
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....n the foregoing provisions, shall not apply to- (i) a person carrying on profession as referred to in sub-section (1) of section 44AA; (ii) a person earning income in the nature of commission or brokerage; or (iii) a person carrying on any agency business.] Explanation.- For the purposes of this section,- (a) "eligible assessee" means,- (i) an individual, Hindu undivided family or a partnership firm, who is a resident, but not a limited liability partnership firm as defined under clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); and (ii) who has not claimed deduction under any of the sections 10A, 10AA, 10B, 10BA o....
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.... And was Omitted vide Section 12 of the Finance Act, 1997 w.e.f. 01-04-1997 "(5) Nothing contained in the foregoing provisions of this section shall apply, where the assessee claims and produces evidence to prove that the profits and gains from the aforesaid business are lower than the profits and gains specified in sub-section (1), and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee and determine the sum payable by the assessee on the basis of assessment made under sub-section (3) of section 143." 4. Inserted vide Section 29 of the Finance Act, 1999 w.e.f. 01-04-1998 5. Substituted vide Section 20 of the Finance (No. 2) Act, 2009 w.....
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....tion (1) shall be deemed to have been calculated as if the assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years. (4) The provisions of sections 44AA and 44AB shall not apply in so far as they relate to the business referred to in sub-section (1) and in computing the monetary limits under those sections, the gross receipts or, as the case may be, the income from the said business shall be excluded. ^3[(5) Nothing contained in the foregoing provisions of this section shall apply, where the assessee claims and produces evidence to prove that the profits and gains from the aforesaid business during the previous year relevant to the assessment ....
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....ore it was read as, "Provided that where the eligible assessee is a firm, the salary and interest paid to its partners shall be deducted from the income computed under sub-section (1) subject to the conditions and limits specified in clause (b) of section 40." 9. Substituted vide Section 26 of the Finance Act, 2016 w.e.f. 01-04-2017 before it was read as, "(4) The provisions of Chapter XVII-C shall not apply to an eligible assessee inso far as they relate to the eligible business. (5) Notwithstanding anything contained in the foregoing provisions of thissection, an eligible assessee who claims that his profits and gains from the eligible business are lower than the profits and gains specified in s....