{"id":12747,"date":"2021-06-10T23:53:35","date_gmt":"2021-06-10T18:23:35","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=12747"},"modified":"2026-01-28T00:34:37","modified_gmt":"2026-01-27T19:04:37","slug":"presumptive-taxation-scheme-in-india","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/","title":{"rendered":"Presumptive Taxation Scheme(U\/s 44AD, 44ADA, 44AE)"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d0b2a13aa14\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d0b2a13aa14\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#PRESUMPTIVE_TAXATION_FOR_BUSINESS_AND_PROFESSION_SECTION_44AD_44ADA_44AE\" title=\"PRESUMPTIVE TAXATION FOR BUSINESS AND PROFESSION SECTION 44AD, 44ADA, 44AE\">PRESUMPTIVE TAXATION FOR BUSINESS AND PROFESSION SECTION 44AD, 44ADA, 44AE<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#INTRODUCTION\" title=\"INTRODUCTION\">INTRODUCTION<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#Presumptive_Taxation_Scheme\" title=\"Presumptive Taxation Scheme\">Presumptive Taxation Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#PRESUMPTIVE_TAXATION_FOR_BUSINESSES\" title=\"PRESUMPTIVE TAXATION FOR BUSINESSES\">PRESUMPTIVE TAXATION FOR BUSINESSES<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#LEGAL_ENTITY\" title=\"LEGAL ENTITY\">LEGAL ENTITY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#ELIGIBILITY_CRITERIA_FOR_SECTION_44AD\" title=\"ELIGIBILITY CRITERIA FOR SECTION 44AD\">ELIGIBILITY CRITERIA FOR SECTION 44AD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#BUSINESSES_NOT_INCLUDED_UNDER_SECTION_44AD\" title=\"BUSINESSES NOT INCLUDED UNDER SECTION 44AD\">BUSINESSES NOT INCLUDED UNDER SECTION 44AD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#MAINTENANCE_OF_BOOKS_OF_ACCOUNTS\" title=\"MAINTENANCE OF BOOKS OF ACCOUNTS\">MAINTENANCE OF BOOKS OF ACCOUNTS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#TAX_AUDIT\" title=\"TAX AUDIT\">TAX AUDIT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#PRESUMPTIVE_TAXATION_RATE\" title=\"PRESUMPTIVE TAXATION RATE\u00a0\">PRESUMPTIVE TAXATION RATE\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#COMPUTATION\" title=\"COMPUTATION\">COMPUTATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#BENEFITS\" title=\"BENEFITS\">BENEFITS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#FILING_OF_ANNUAL_RETURN\" title=\"FILING OF ANNUAL RETURN\">FILING OF ANNUAL RETURN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#OPT-IN_AND_OUT_FROM_SCHEME\" title=\"OPT-IN AND OUT FROM SCHEME\">OPT-IN AND OUT FROM SCHEME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#OTHER_PROVISIONS\" title=\"OTHER PROVISIONS\">OTHER PROVISIONS<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#PRESUMPTIVE_TAXATION_FOR_PROFESSION\" title=\"PRESUMPTIVE TAXATION FOR PROFESSION\">PRESUMPTIVE TAXATION FOR PROFESSION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#PRESUMPTIVE_TAXATION_UNDER_SECTION_44ADA\" title=\"PRESUMPTIVE TAXATION UNDER SECTION 44ADA\">PRESUMPTIVE TAXATION UNDER SECTION 44ADA<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#MAINTENANCE_OF_BOOKS_OF_ACCOUNTS-2\" title=\"MAINTENANCE OF BOOKS OF ACCOUNTS\">MAINTENANCE OF BOOKS OF ACCOUNTS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#NECESSARY_ACCOUNTS_UNDER_RULE_6F\" title=\"NECESSARY ACCOUNTS UNDER RULE 6F\">NECESSARY ACCOUNTS UNDER RULE 6F<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#B_PROFESSIONALS_CARRYING_NON-SPECIFIED_PROFESSIONS\" title=\"B.\u00a0 PROFESSIONALS CARRYING NON-SPECIFIED PROFESSIONS\">B.\u00a0 PROFESSIONALS CARRYING NON-SPECIFIED PROFESSIONS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#COMPUTATION-2\" title=\"COMPUTATION\">COMPUTATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#ITR_FILING\" title=\"ITR FILING\">ITR FILING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#TAX_AUDIT-2\" title=\"TAX AUDIT\">TAX AUDIT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#OPT-IN_AND_OUT_FROM_SECTION_44ADA\" title=\"OPT-IN AND OUT FROM SECTION 44ADA\">OPT-IN AND OUT FROM SECTION 44ADA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#FREELANCERS\" title=\"FREELANCERS\">FREELANCERS<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#PRESUMPTIVE_TAXATION_UNDER_SECTION_44AE\" title=\"PRESUMPTIVE TAXATION UNDER SECTION 44AE\">PRESUMPTIVE TAXATION UNDER SECTION 44AE<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#ELIGIBLE_ENTITY\" title=\"ELIGIBLE ENTITY\">ELIGIBLE ENTITY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#COMPUTATION_OF_TAX\" title=\"COMPUTATION OF TAX\">COMPUTATION OF TAX<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#ADVANCE_TAX\" title=\"ADVANCE TAX\">ADVANCE TAX<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#MAINTENANCE_OF_BOOKS_OF_ACCOUNTS-3\" title=\"MAINTENANCE OF BOOKS OF ACCOUNTS\u00a0\">MAINTENANCE OF BOOKS OF ACCOUNTS\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#DEPRECIATION_ALLOWED\" title=\"DEPRECIATION ALLOWED\">DEPRECIATION ALLOWED<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#TAX_AUDIT-3\" title=\"TAX AUDIT\">TAX AUDIT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#DEDUCTIBLE_EXPENSES\" title=\"DEDUCTIBLE EXPENSES\">DEDUCTIBLE EXPENSES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/carajput.com\/blog\/presumptive-taxation-scheme-in-india\/#Central_Board_of_Direct_Taxes_enabled_Tax_Audit_Utility_3CA-CD_3CB-CD_for_Assessment_Year_2020-21_and_Assessment_Year_2021-22\" title=\"Central Board of Direct Taxes enabled Tax Audit Utility (3CA-CD &amp; 3CB-CD) for Assessment Year 2020-21 and Assessment Year 2021-22\">Central Board of Direct Taxes enabled Tax Audit Utility (3CA-CD &amp; 3CB-CD) for Assessment Year 2020-21 and Assessment Year 2021-22<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-31123\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/tax-.jpeg\" alt=\"Presumptive Taxation\" width=\"1444\" height=\"870\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/tax-.jpeg 1444w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/tax--300x181.jpeg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/tax--1024x617.jpeg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/tax--768x463.jpeg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/tax--800x482.jpeg 800w\" sizes=\"(max-width: 1444px) 100vw, 1444px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"PRESUMPTIVE_TAXATION_FOR_BUSINESS_AND_PROFESSION_SECTION_44AD_44ADA_44AE\"><\/span><span style=\"color: #ff0000;\"><strong>PRESUMPTIVE TAXATION FOR BUSINESS AND PROFESSION <\/strong><strong>SECTION 44AD, 44ADA, 44AE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the new provisions, implemented by the <a href=\"https:\/\/carajput.com\/blog\/taxes-on-income-received-from-blogging-under-income-tax\/\">Income<\/a> Tax Department, some sought of relief has been provided to small taxpayers, wherein, instead of undertaking the tedious job of maintenance of books of account and their auditing, they can apply for presumptive taxation scheme under sections 44AD, Section 44ADA and Section 44AE.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"INTRODUCTION\"><\/span><span style=\"color: #000080;\"><strong>INTRODUCTION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Presumptive taxation scheme related to providing relief to small taxpayers. Any small taxpayer whose turnover is less than Rs 2 crores shall be eligible for such a scheme. To facilitate the running of businesses without any burden due to excessive compliance-related requirements, Section 44AD was introduced in the Income Tax Act.<\/p>\n<p>Under this section, the assesses can declare their income at the prescribed rate and be relieved from the requirement of maintaining books of account.<\/p>\n<p>This relaxation would also involve non-requirement of getting the accounts auditing, thus saving their cost and time. Businesses that enroll for taxation under the presumptive taxation scheme shall compute their income on an estimated basis, as provided under Section 44AD.<\/p>\n<p>The small taxpayers can avail of the following presumptive taxation scheme under the Income-tax Act \u2013<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Presumptive_Taxation_Scheme\"><\/span><span style=\"color: #000080;\">Presumptive Taxation Scheme<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Presumptive taxation scheme under section 44AD.<\/li>\n<li>Presumptive taxation scheme under section 44ADA.<\/li>\n<li>The Presumptive taxation scheme under section 44AE.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"PRESUMPTIVE_TAXATION_FOR_BUSINESSES\"><\/span><span style=\"color: #ff0000;\"><strong>PRESUMPTIVE TAXATION FOR BUSINESSES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"LEGAL_ENTITY\"><\/span><span style=\"color: #000080;\"><strong>LEGAL ENTITY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The entity that shall be enrolled under the scheme shall be a business that may differ based on the nature and size of its operations. Some of the common forms of business are \u2013<\/p>\n<ul>\n<li>Sole Proprietorship<\/li>\n<li>Limited Liability Partnership<\/li>\n<li>Private Company<\/li>\n<li>Public Company<\/li>\n<li>Joint Venture<\/li>\n<\/ul>\n<p>It is generally advised that the entity should be a company, since by forming a company, there is a separate legal entity, due to which the company can have its PAN and same be used to file a separate tax return.<\/p>\n<p>Also read: <a href=\"https:\/\/carajput.com\/learn\/legal-compliance-audit-in-india.html\">Legal Compliance Audit service in India<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"ELIGIBILITY_CRITERIA_FOR_SECTION_44AD\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/faqs-on-tax-audit-under-income-tax-act\/\"><span style=\"color: #000080;\"><strong>ELIGIBILITY CRITERIA FOR SECTION 44AD<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For an entity to pay tax under this scheme shall follow the following conditions \u2013<\/p>\n<ol>\n<li>The following persons can apply for this scheme \u2013<\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Any resident individual in India<\/li>\n<li>Resident Hindu Undivided Families (HUFs) in India<\/li>\n<li>A partnership firm resident in India<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>The entities mentioned above must not have claimed deductions in income tax during the relevant assessment year under the following sections &#8211;<\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>10A<\/li>\n<li>10AA<\/li>\n<li>10B<\/li>\n<li>10BA<\/li>\n<li>80HH<\/li>\n<li>80RRB<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"3\">\n<li>The following persons shall not be eligible to apply for presumptive taxation scheme under section 44AD &#8211;<\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Any Limited Liability Partnership Firm (LLP) resident in India<\/li>\n<li>Non-Resident of India<\/li>\n<li>Any other person not included in the list of eligible persons.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/PRESUMPTIVE-TAXATION-FOR-BUSINESSES.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12752\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/PRESUMPTIVE-TAXATION-FOR-BUSINESSES.jpg\" alt=\"PRESUMPTIVE TAXATION FOR BUSINESSES\" width=\"830\" height=\"465\" \/><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"BUSINESSES_NOT_INCLUDED_UNDER_SECTION_44AD\"><\/span><span style=\"color: #000080;\"><strong>BUSINESSES NOT INCLUDED UNDER SECTION 44AD<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The following businesses are not eligible to apply for the presumptive scheme under section 44AD &#8211;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Business involved in renting, hiring, and plying of goods carriages as specified under section 44AE<\/li>\n<li>Business working as an agency.<\/li>\n<li>Any Individual receiving commission or any income as a brokerage.<\/li>\n<li>An individual involved in any profession mentioned under section 44AA (1)<\/li>\n<li>Insurance agents receive income in the form of commissions.<\/li>\n<li>Businesses having gross total income exceeding Rs 2 crores in a financial year.<strong>\u00a0<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-25149\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/photo_2023-07-25_00-11-28.jpg\" alt=\"items not covered under 44AD audit\" width=\"906\" height=\"1307\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/photo_2023-07-25_00-11-28.jpg 710w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/photo_2023-07-25_00-11-28-208x300.jpg 208w\" sizes=\"(max-width: 906px) 100vw, 906px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"MAINTENANCE_OF_BOOKS_OF_ACCOUNTS\"><\/span><span style=\"color: #000080;\"><strong>MAINTENANCE OF BOOKS OF ACCOUNTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where the business satisfies the eligibility criteria, they would be required to mandatorily maintain proper books of accounts where \u2013<\/p>\n<ul>\n<li>Their annual income exceeds Rs. 1,20,000.<\/li>\n<li>Their total sales, turnover, or gross receipts exceed Rs. 10,00,000.<\/li>\n<\/ul>\n<p>In any of the 3 financial years immediately preceding the current financial year.<\/p>\n<p>However, in the case of individuals and <a href=\"https:\/\/carajput.com\/blog\/tag\/residential-status-of-huf-under-income-tax-act\/\">HUF<\/a>, the above provisions have been further relaxed and they would be required to maintain proper books of accounts where \u2013<\/p>\n<ul>\n<li>Their annual income exceeds Rs 2.5 lakhs.<\/li>\n<li>Their total sales, turnover or gross receipts exceeds Rs 25 lakhs<\/li>\n<\/ul>\n<p>In any of the three financial years immediately preceding the current financial year.<\/p>\n<p>Where proper books of accounts are not maintained by the persons, requiring to do so, shall be liable to a penalty of up to Rs 25,000.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"TAX_AUDIT\"><\/span><span style=\"color: #000080;\"><strong>TAX AUDIT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Businesses having gross receipts exceeding Rs 1 crore in a financial year, are required to compulsorily have tax audits. The due date for filing the tax audit report has been provided as 30<sup>th<\/sup> September of the relevant assessment year. The report is filed electronically using Form 3CD.<\/p>\n<p>It is also provided that under the normal circumstances, any revision to tax audit report is not possible, however, in some cases where the accounts are subject to any revision, the tax audit report can be revised.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"PRESUMPTIVE_TAXATION_RATE\"><\/span><span style=\"color: #000080;\"><strong>PRESUMPTIVE TAXATION RATE<\/strong><\/span><strong>\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The person opting for presumptive taxation under section 44AD, shall declare their income @ 8% for non-digital transactions or 6% for digital transactions on the gross receipts or turnover.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"COMPUTATION\"><\/span><span style=\"color: #000080;\"><strong>COMPUTATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Suppose there is a company named Ram Traders have gross receipts of Rs 1 Crore for FY 2020-21 and they do not maintain books of accounts. Ram traders is looking to opt for presumptive taxation. In the above Rs 1 crore receipts, receipts worth Rs. 70 Lakhs were received through non-digital transactions while the remaining Rs. 30 Lakhs was received through digital transactions.<\/p>\n<p>The computation of under the head of Income from Business and Profession would be &#8211;<\/p>\n<p>For non-digital transactions: 8% of 70,00,000 \u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 =\u00a0Rs. 5,60,000<br \/>\nFor digital transactions: \u00a06% of 30,00,000 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 =\u00a0Rs. 1,80,000<br \/>\nIncome under the head \u201cBusiness or Profession\u201d will be\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 = Rs 7,40,000<\/p>\n<h3><span class=\"ez-toc-section\" id=\"BENEFITS\"><\/span><span style=\"color: #000080;\"><strong>BENEFITS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Eligible to claim deduction in relation to donation made in National Defence Fund.<\/li>\n<li>Can claim deduction regarding donation made to Prime Minister\u2019s National Relief Fund.<\/li>\n<li>Taxable income is determined at a flat rate of 8% or 6%, depending on the nature of receipts, on the total turnover.<\/li>\n<li>No need to determine and adjust the amount of expenses from income to determine the taxable income.<\/li>\n<li>Non-obligation to maintain proper books of accounts under certain specified cases.<\/li>\n<li>Non-obligation towards auditing of books of accounts.<\/li>\n<li>Whenever the liability to pay advance tax arises, they can pay the same, without calculating the income, and the whole of the amount be paid before March 31, instead of making payments quarterly.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"FILING_OF_ANNUAL_RETURN\"><\/span><span style=\"color: #000080;\"><strong>FILING OF ANNUAL RETURN<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where any individual of HUF carries on a business and opts for payment under a presumptive taxation scheme, shall file their annual return of income in form<a href=\"https:\/\/carajput.com\/blog\/tag\/filing-of-income-tax-return\/\"> ITR<\/a> 3.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"OPT-IN_AND_OUT_FROM_SCHEME\"><\/span><span style=\"color: #000080;\"><strong>OPT-IN AND<\/strong> <strong>OUT FROM<\/strong> S<strong>CHEM<\/strong>E<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It is provided that the person eligible to claim the benefit under Section 44AD, shall avail the same at any time during the relevant financial year. And also, such a person can opt out of the scheme at any point in time.<\/p>\n<p>However, where a person opts out from the scheme of Presumptive Taxation under Section 44AD, the same shall not be eligible to avail the scheme for the next 5 financial years.<\/p>\n<table style=\"height: 220px;\" width=\"853\">\n<tbody>\n<tr>\n<td><span style=\"color: #993366;\"><strong>PARTICULARS<\/strong><\/span><\/td>\n<td><span style=\"color: #993366;\"><strong>PRESUMPTIVE TAXATION UNDER SECTION 44AD<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>AY 2019-20<\/td>\n<td>OPTS FOR PRESUMPTIVE TAXATION<\/td>\n<\/tr>\n<tr>\n<td>AY 2020-21<\/td>\n<td>DOES NOT OPT FOR PRESUMPTIVE TAXATION<\/td>\n<\/tr>\n<tr>\n<td>AY 2021-22 &#8211; AY 2025-26<\/td>\n<td>INELIGIBLE FOR PRESUMPTIVE TAXATION<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"OTHER_PROVISIONS\"><\/span><span style=\"color: #000080;\"><strong>OTHER PROVISIONS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Where an assessee is carrying more than 1 business, the total receipts or turnover for presumptive taxation eligibility, shall be taken as the total turnover from all the businesses.<\/li>\n<li>Where an assessee is carrying on a business as well as profession, Section 44AD shall apply only on the income earned from business.<\/li>\n<li>The assessee opting to declare their income as per presumptive taxation under section 44AD shall not be eligible to claim\u00a0deductions under chapter VI-A<\/li>\n<li>The assessee applying for presumptive taxation under section 44AD shall file his\u00a0income tax returnin\u00a0ITR Form 4 \u2013 Sugam<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"PRESUMPTIVE_TAXATION_FOR_PROFESSION\"><\/span><span style=\"color: #ff0000;\"><strong>PRESUMPTIVE TAXATION FOR PROFESSION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"PRESUMPTIVE_TAXATION_UNDER_SECTION_44ADA\"><\/span><span style=\"color: #000080;\"><strong>PRESUMPTIVE TAXATION UNDER SECTION 44ADA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The benefit under this scheme shall be applicable to professions registered in India. Professionals having total gross receipts of up to Rs. 50 Lakhs in a\u00a0financial year, shall be eligible to claim benefit under this Section with effect from Financial Year 2016-17.<\/p>\n<p>Under this scheme, the taxable income of the person shall be determined at a flat rate of 50% of the total receipts.<\/p>\n<p>The following professions be eligible to avail the benefit of presumptive taxation under section 44ADA \u2013<\/p>\n<ul>\n<li>Legal services<\/li>\n<li>Medical services<\/li>\n<li>Engineering services<\/li>\n<li>Architectural services<\/li>\n<li>Profession related to Accountancy<\/li>\n<li>Technical Consultancy services<\/li>\n<li>Interior Decoration services<\/li>\n<\/ul>\n<p>The scheme includes only resident Individual, HUF and Partnership firms only and exclude Limited Liability Partnership firm. The person opting under this scheme, shall be allowed claim deductions under Section 30 to 38. However, no other deduction related to expenses shall be allowed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MAINTENANCE_OF_BOOKS_OF_ACCOUNTS-2\"><\/span><span style=\"color: #000080;\"><strong>MAINTENANCE OF BOOKS OF ACCOUNTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>A. PROFESSIONALS CARRYING SPECIFIED PROFESSIONS<\/strong><\/span><\/p>\n<p>Professionals carrying the above-mentioned professions would be required to maintain books of accounts in accordance with Rule 6F, provided their annual gross receipts exceeds Rs. 1.5lakhs in any of the 3 immediately preceding financial years.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"NECESSARY_ACCOUNTS_UNDER_RULE_6F\"><\/span><span style=\"color: #000080;\"><strong>NECESSARY ACCOUNTS UNDER RULE 6F<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Cash Book\u00a0\u2013 Book containing all the records of cash receipts and payments.<\/li>\n<li>Journal \u2013 It is an account maintained as a log of day-to-day transactions.<\/li>\n<li>Ledger\u00a0\u2013 Book where all your entries from the journal, are transferred to separate accounts containing the details of all the accounts.<\/li>\n<li>Proper maintenance of photocopies of the\u00a0bills or receipts\u00a0of value\u00a0exceeding Rs. 25<\/li>\n<li>Proper maintenance of original bills or receipts\u00a0of value exceeding Rs. 50<\/li>\n<li>Daily case registers to provide details of patients, fees received, services provided and date of receipt in case of medical services.<\/li>\n<li>Book stating the stock details of the medicines and other consumable items.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"B_PROFESSIONALS_CARRYING_NON-SPECIFIED_PROFESSIONS\"><\/span><span style=\"color: #000080;\"><strong>B.\u00a0 <\/strong><strong>PROFESSIONALS CARRYING NON-SPECIFIED PROFESSIONS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">Where the person carries the profession other than those discussed above, the same would be required to maintain proper books of accounts, provided the total annual income exceeds Rs. 2.5 lakhs or annual gross receipts exceeds Rs. 25 lakhs in any one of the immediately preceding 3 financial years.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"COMPUTATION-2\"><\/span><span style=\"color: #000080;\"><strong>COMPUTATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">The total gross receipts be determined by reducing the amount of expenses related to the profession like salary to any employee, rent for the premises of carrying profession, internet expenses, mobile expenses, official travel, lunch expenses etc.<\/p>\n<p style=\"padding-left: 40px;\">Suppose, Arun is an interior designer and is having a gross revenue of Rs 40 lakhs for the FY 2020-21. The following expenses were incurred during the year \u2013<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Internet and mobile expenses \u2013 RS 50,000<\/li>\n<li>Salary to employees \u2013 Rs 5 lakhs<\/li>\n<li>Rent of premises \u2013 Rs 2 lakhs<\/li>\n<li>Lunch expenses \u2013 Rs 50,000<\/li>\n<li>Travel expenses \u2013 Rs 1 lakhs<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<table style=\"margin-left: 40px; height: 397px;\" width=\"808\">\n<tbody style=\"padding-left: 40px;\">\n<tr style=\"padding-left: 40px;\">\n<td style=\"padding-left: 40px;\"><\/td>\n<td><strong>PARTICULARS<\/strong><\/td>\n<td><strong>AMOUNT (IN RS)<\/strong><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>GROSS RECEIPTS<\/td>\n<td>40,00,000<\/td>\n<\/tr>\n<tr>\n<td>LESS &#8211;<\/td>\n<td>EXPENSES RELATED TO PROFESSION<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>INTERNET AND MOBILE<\/td>\n<td>50,000<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>SALARY<\/td>\n<td>5,00,000<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>RENT<\/td>\n<td>2,00,000<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>LUNCH EXPENSES<\/td>\n<td>50,000<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>TRAVEL EXPENSES<\/td>\n<td>1,00,000<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td>NET RECEIPTS<\/td>\n<td>31,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"padding-left: 40px;\"><span style=\"color: #000000;\">However, in the case of presumptive taxation, the income would 50% of Rs 40 lakhs = Rs 20 lakhs which would be lower than that as determined above.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"ITR_FILING\"><\/span><span style=\"color: #000080;\"><strong>ITR FILING<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">The person carrying a professional, shall file ITR 3, as their annual return and the same be filed on and before 31<sup>st<\/sup> July of the Assessment.<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/PRESUMPTIVE-TAXATION-UNDER-SECTION-44AE-....jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12755\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/PRESUMPTIVE-TAXATION-UNDER-SECTION-44AE-....jpg\" alt=\"PRESUMPTIVE TAXATION UNDER SECTION 44AE \" width=\"1110\" height=\"944\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/PRESUMPTIVE-TAXATION-UNDER-SECTION-44AE-....jpg 1110w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/PRESUMPTIVE-TAXATION-UNDER-SECTION-44AE-...-300x255.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/PRESUMPTIVE-TAXATION-UNDER-SECTION-44AE-...-1024x871.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/PRESUMPTIVE-TAXATION-UNDER-SECTION-44AE-...-768x653.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/06\/PRESUMPTIVE-TAXATION-UNDER-SECTION-44AE-...-800x680.jpg 800w\" sizes=\"(max-width: 1110px) 100vw, 1110px\" \/><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"TAX_AUDIT-2\"><\/span><span style=\"color: #000080;\"><strong>TAX AUDIT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">Professionals shall be liable to tax audit, where their gross receipts exceed Rs 25 lakhs during any financial year. In case of any failure, a monetary penalty of up to 0.5% of the gross receipts or Rs 1.5 lakhs whichever is lower, shall be applied.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"OPT-IN_AND_OUT_FROM_SECTION_44ADA\"><\/span><span style=\"color: #000080;\"><strong>OPT-IN AND OUT FROM SECTION 44ADA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">It is provided that any person eligible to the scheme under section 44ADA, can opt in and opt out from the scheme at any point of time, without any 5-year restriction, as applicable in case of section 44AD.<\/p>\n<table style=\"height: 122px;\" width=\"584\">\n<tbody>\n<tr>\n<td><span style=\"color: #000080;\"><strong>PARTICULARS<\/strong><\/span><\/td>\n<td><span style=\"color: #000080;\"><strong>PRESUMPTIVE TAXATION UNDER SECTION 44ADA<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td>AY 2019-20<\/td>\n<td>OPTS FOR PRESUMPTIVE TAXATION<\/td>\n<\/tr>\n<tr>\n<td>AY 2020-21<\/td>\n<td>DOES NOT OPT FOR PRESUMPTIVE TAXATION<\/td>\n<\/tr>\n<tr>\n<td>AY 2021-22<\/td>\n<td>ELIGIBLE TO OPT FOR PRESUMPTIVE TAXATION.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"FREELANCERS\"><\/span><span style=\"color: #000080;\"><strong>FREELANCERS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">Freelancers shall also be eligible for presumptive taxation, provided they are involved in any of the specified or non-specified professions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"PRESUMPTIVE_TAXATION_UNDER_SECTION_44AE\"><\/span><span style=\"color: #ff0000;\"><strong>PRESUMPTIVE TAXATION UNDER SECTION 44AE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"ELIGIBLE_ENTITY\"><\/span><span style=\"color: #000080;\"><strong>ELIGIBLE ENTITY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">Such a scheme can be availed by any person engaged in the\u00a0business of plying, hiring or leasing of goods carriages\u00a0and the said business does not involve vehicles exceeding 10 goods vehicles at any point of time in a financial year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"COMPUTATION_OF_TAX\"><\/span><span style=\"color: #000080;\"><strong>COMPUTATION OF TAX<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">In order to compute tax under this section, the following provisions be followed &#8211;<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li>Where the vehicle involves a heavy goods vehicle (having gross weight exceeding 12000kg), income in respect of such truck shall be of Rs. 1,000 per ton of gross weight of the vehicle, for every month or part of month of usage.<\/li>\n<li>Where the vehicle is a light weight goods vehicle, the income in respect of such truck shall be Rs 7,500 for every month or part of a month of usage.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"ADVANCE_TAX\"><\/span><span style=\"color: #000080;\"><strong>ADVANCE TAX<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">It is to be noted that no relaxation in respect of advance tax payment be provided to persons opting for a presumptive taxation scheme under section 44AE.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MAINTENANCE_OF_BOOKS_OF_ACCOUNTS-3\"><\/span><span style=\"color: #000080;\"><strong>MAINTENANCE OF BOOKS OF ACCOUNTS\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">It is provided that the persons opting for the presumptive scheme under this section, shall maintain proper books of accounts in relation to income, expenses, assets, and liabilities of their business since these financial records would be essential to understand the performance of their business.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"DEPRECIATION_ALLOWED\"><\/span><span style=\"color: #000080;\"><strong>DEPRECIATION ALLOWED<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">It is provided that no credit for depreciation be allowed to persons opting for this scheme. Whenever a person purchases a capital asset, the benefit of the same is expected to last for more than a year.<\/p>\n<p style=\"padding-left: 40px;\">Every year a small portion of its cost is expensed and is allowed to be reduced from your income. This amount of expense being charged every year is known as depreciation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"TAX_AUDIT-3\"><\/span><span style=\"color: #000080;\"><strong>TAX AUDIT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">Tax audit would be required to be undertaken by a Chartered Accountant where \u2013<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li>The person is carrying profession and has annual gross receipts exceeding Rs.50 lakhs<\/li>\n<li>The person is carrying a business and has annual revenue exceeding Rs.1 crores<\/li>\n<li>A Person has opted for presumptive taxation, and the total income exceeds the basic exemption limit applicable on them.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"DEDUCTIBLE_EXPENSES\"><\/span><span style=\"color: #000080;\"><strong>DEDUCTIBLE EXPENSES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Rent paid for property where business is carried out.<\/li>\n<li>Food and travel expenses related to official purpose.<\/li>\n<li>Advertising, promotional and printing expenses in business.<\/li>\n<li>Depreciation on assets used for carrying business activities.<\/li>\n<li>Fees paid to a CA for Income tax return filing.<\/li>\n<li>Travelling expenses for official work<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Central_Board_of_Direct_Taxes_enabled_Tax_Audit_Utility_3CA-CD_3CB-CD_for_Assessment_Year_2020-21_and_Assessment_Year_2021-22\"><\/span><span style=\"color: #000080;\"><strong>Central Board of Direct Taxes<\/strong><strong> enabled Tax Audit Utility (3CA-CD &amp; 3CB-CD) for Assessment Year 2020-21 and Assessment Year 2021-22<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Central Board of Direct Taxes has enabled offline utilities for filing statutory Income-tax forms (Form 3CA-CD &amp; 3CB-CD).<\/li>\n<li>The form is enabled for Assessment Year 2021-22 &amp; Assessment Year 2020-21, Prior years would be available shortly.<\/li>\n<\/ul>\n<p>Popular blog:-\u00a0<a href=\"https:\/\/carajput.com\/archives\/all-about-income-tax-audit-check-list-of-tax-audit.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/archives\/all-about-income-tax-audit-check-list-of-tax-audit.pdf\">Tax Audit Check List\u00a0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PRESUMPTIVE TAXATION FOR BUSINESS AND PROFESSION SECTION 44AD, 44ADA, 44AE Under the new provisions, implemented by the Income Tax Department, some sought of relief has been provided to small taxpayers, wherein, instead of undertaking the tedious job of maintenance of books of account and their auditing, they can apply for presumptive taxation scheme under sections &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[117],"tags":[2761],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12747"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=12747"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12747\/revisions"}],"predecessor-version":[{"id":31126,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12747\/revisions\/31126"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=12747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=12747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=12747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}