Simplifying Tax Compliance with Presumptive Taxation
Section 44AD:
Eligible: Resident individuals, HUFs, partnership firms.
Turnover Limit: Up to INR 2 crore.
Benefits: Exemption from books of accounts and tax audit.
Calculation: Net income at a specified rate (e.g., 8% of turnover).
Section 44ADA:
Eligible: Professionals with gross receipts up to INR 50 lakhs.
Benefits: Exemption from books of accounts and tax audit.
Calculation: Net income deemed at 50% of gross receipts.
Section 44AE:
Eligible Business: Plying, hiring, or leasing goods carriages.
Characteristics: No turnover limit.
Calculation: Prescribed rate per month per vehicle.
Benefits: Exemption from books of accounts and business expenses deduction.
These schemes aim to streamline tax reporting for small taxpayers, reducing administrative burdens and allowing focus on core business activities.