PREUMPTIVE TAX under Income Tax BY C A
PREUMPTIVE TAX under Income Tax BY C. A. M. LAKSHMANAN, B. COM. , F. C. A. , D. I. S. A. (ICAI). , FIIISLA. ,
INTRODUCTION • For Small Business men, Traders and Professionals: • 44 AD - Business – Turnover up to Rs. 2 Crores – • 44 ADA – Professionals – Gross Receipts up to Rs. 50 L • 44 AE – Truck owners up to 10 Trucks • For Co-operative Societies: • 44 DDB – Reorganization Co-operative Societies Presumptive Tax by CA. M. Lakshmanan, Madurai.
INTRODUCTION –Contd. , • For Non-Residents • 44 B - Shipping • 44 BB – Exploration of Oils & Minerals. • 44 BBA – Operation of Aircraft • 44 BBB – Civil Construction, Power Project • 44 C – Deduction of Head Office Expenses • 44 D & 44 DA – Royalty or Fees for technical services Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AD Small Business Assessees • Applicability • Resident Individuals, Resident HUFs, Resident Partnership Firms (not LLPs) engaged in eligible business. • Eligible Business does not Include: • Business of plying Trucks covered u. s 44 AE • Profession referred to u. s 44 ADA • Commission or Brokerage • Agency Business • Turnover more than Rs. 2 Crores Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AD Small Business Assessees • ESTIMATED INCOME • 6% of Turnover received by a/c payee cheque, bank draft or ECS before the due date of filing the Return of Income. • 8% of Turnover not covered above. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AD Small Business Assessees • Non Admissibility of Business Deductions • All deductions from sec 30 to 38 including Depreciation deemed to have been allowed • No Deduction of Interest and Salary to Partners • Up to A. Y. 2016 -17 allowed • From A. Y. 2017 -18 not allowed Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AD Small Business Assessees • Deduction under Chapter VI A allowable • Deduction u. s 80 C to 80 U are allowed • Books of Account need not be maintained • No Books – No Audit • Basic Records to be maintained – Turnover – Receipt by cash or other mode – WDV. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AD Small Business Assessees • Lower Income may be declared • If declared in subsequent year with audited accounts – not eligible to claim benefit u. s. 44 AD for subsequent five years. • If the total income exceeds the basic limit accounts are to be audited. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AD Small Business Assessees • Tax Liability and Advance Tax • Tax is be paid at applicable rates. • Advance Tax to be paid in one instalment on 15 th March. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 ADA Small Professionals • Applicability • Resident Assessee – Profession referred to in Section 44 AA(1) • Gross Receipts do not exceed Rs. 50 Lakhs Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 ADA Small Professionals • Profession referred to in Section 44 AA(1) 1. Legal 5 Accountancy 2 Medical 6. Technical Consultancy 3. Engineering 7. Interior Decoration 4. Architecture 8. Other notified Professions Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 ADA Small Professionals • Other notified Professions: a. Authorised Representative b. Film Artiste c. Company Secretary d. Information Technology Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 ADA Small Professionals • Estimated Income: • 50% of Gross Receipts as professional Income • Other income – normal course Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 ADA Small Professionals • Non Admissibility of business Dedutions: • All Deductions u. s 30 to 38 including Depreciation deemed to have been allowed. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 ADA Small Professionals • No Deduction of Interest and Salary to Partners: • Scheme is silent – Specifically allowed u. s 44 AE and not allowed u. s 44 AD. • If paid not allowed in firm’s hand assessed in partner’s hand? Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 ADA Small Professionals • Deduction under Chapter VI A allowable: • Deduction u. s 80 C to 80 U are allowed. • Books of Account need not be maintained • No Books – No Audit • Basic Records to be maintained – Turnover – WDV. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 ADA Small Professionals • Deduction under Chapter VI A allowable: • Deduction u. s 80 C to 80 U are allowed. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 ADA Small Professionals • Tax Liability and Advance Tax • Tax to be paid at applicable rates • Advance Tax to be paid in one instalment on 15 th March. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AE Truck Owners • Applicabilty • Plying, Leasing or hiring of Trucks owning not more than 10 trucks at any time during the year. • Estimated Income: • For A. Y. 2018 -19 – Rs. 7, 500/- p. m. or part. • For A. Y. 2019 -20 • For Heavy Goods Vehicle – Rs. 1, 000 p. m. per ton • For others Rs. 7, 500/- p. m. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AE Truck Owners • Non Admissibility of business Dedutions: • All Deductions u. s 30 to 38 including Depreciation deemed to have been allowed. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AE Truck Owners • Deduction of Interest and Salary to Partners: • Allowed subject to limits specified u. s 40 b Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AE Truck Owners • Deduction under Chapter VI A allowable: • Deductions u. s 80 C to 80 U are allowed Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AE Truck Owners • Lower Income may be declared in subsequent year – no restrictions. • No Books – No Audit • Basic Records to be maintained – Turnover –WDV. Presumptive Tax by CA. M. Lakshmanan, Madurai.
44 AE Truck Owners • Tax Liability and Advance Tax • To be paid at applicable rates as per normal provisions. - No concession as in other two schemes. Presumptive Tax by CA. M. Lakshmanan, Madurai.
Thank you Any Questions? Presumptive Tax by CA. M. Lakshmanan, Madurai.
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