Details, Fiction and 44 cash

For this reason the taxpayer can opt to the presumptive taxation plan under area 44ADA as well as taxable profits chargeable is fifty% of the whole receipts. 

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In the above mentioned circumstance, Mr Ram can choose presumptive taxation if the tax is compensated on 50% of gross receipts. Hence, Ram can decide to shell out tax under the presumptive scheme of taxation under section 44ADA. 

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The presumptive scheme of taxation decreases the compliance stress on smaller professions and facilitates relieve of executing small business. Beneath the presumptive plan of taxation, revenue/taxable earnings is presumed at 50% with the gross receipts.