44 cash No Further a Mystery

The presumptive scheme of taxation reduces the compliance stress on small professions and facilitates simplicity of accomplishing business enterprise. Under the presumptive scheme of taxation, profits/taxable money is presumed at fifty% of your gross receipts.

Area 44ADA offers a straightforward approach to taxation for compact specialists. Portion 44ADA provides a plan of presumptive taxation for revenue and gains arising from professions stated underneath Segment 44AA(1) in the Revenue Tax Act, 1961.

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six% of full turnover or gross receipts of a tax 12 months received by account payee cheque/bank draft, ECS by means of checking account on or in advance of owing date of filing the return of revenue

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In the above situation, Mr Ram can select presumptive taxation In the event the tax is compensated on 50% of gross receipts. As a result, Ram can prefer to pay tax under the presumptive scheme of taxation underneath portion 44ADA. 

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