About Presumptive Basis Income Under Section 44AD and Section 44ADA under Income Tax Act Section 44AD If the Assessee adopts/choose ITR under section 44AD then he has to file ITR under this for consecutive 5 years. Otherwise, for example, if assessee file ITR under this
About Presumptive Basis Income Under Section 44AD and Section 44ADA under Income Tax Act
Section 44AD
If the Assessee adopts/choose ITR under section 44AD then he has to file ITR under this for consecutive 5 years.
Otherwise, for example, if assessee file ITR under this for 2 years and the series then he could not take the benefit of it, as you are disqualified from 5 consecutive years.
ITR 4 is to fill under presumptive scheme rather than ITR 3 which is wide and complicated
Applicability of this is for Individual, Hindu Undivided Family (HUF), and Partnership firm.
This is not applicable to Company and LLP.
Payment of Advance tax is not required in the presumptive basis scheme.
Audit and Maintaining of books of Accounts are not required under this.
It is applicable to 2 cr turnover
For the business like Commission and Brokerages, Plying and Hiring of carriage of goods ..this is not applicable.
We have to declare Profit minimum of 8 % for cash base business whereas 6% for digital mode.
Section 44ADA
This section is applicable to professionals. i.e. Accounting, Legal, Engineering, Architectural, Medical, Technical Consultant or Interior Business.
In this, the limit is 50 lakh.
We have to declare Profit minimum of 50%.
