What is the turnover limit for 44AD?

The presumptive taxation scheme of section 44AD can be opted by the eligible persons, if the total turnover or gross receipts from the business do not exceed Rs. 2,00,00,000. In other words, if the total turnover or gross receipt of the business exceeds Rs. 2,00,00,000 then the scheme of section 44AD cannot be adopted.

What is the turnover limit for 44AD for AY 2020 21?

Section 44 ADA limits – Total gross earnings from a profession should not be more than INR 50 lakhs for a given financial year. – If the income from a profession is less than 50% of the gross receipts, the taxpayer is required to maintain a book of accounts.

What is the turnover limit for 44AD for AY 2021 22?

Rs. 2 crores
Ans. Section 44AB of the Income-tax Act prescribes the conditions under which an assessee is required to get his accounts audited. It excludes a person from getting books of account audited if he opts for a presumptive taxation scheme under Section 44AD provided turnover of business does not exceed Rs. 2 crores.

Who is not eligible for 44AD?

The following persons are not eligible to opt for the presumptive taxation scheme of Section 44AD: Any firm or person that has made a claim for deductions under Sections 80HH to 80RRB or under Sections 10AA or 10A or 10B or 10BA during an assessment year.

Who Cannot claim 44AD?

A person who is earning income in the nature of commission or brokerage cannot adopt the presumptive taxation scheme of section 44AD. Insurance agents earn income by way of commission and, hence, they cannot adopt the presumptive taxation scheme of section 44AD.

What is Section 44AD and 44ADA?

For small taxpayers the Income-tax Act has framed two presumptive taxation schemes as given below: 1) The presumptive taxation scheme of section 44AD. 2) The presumptive taxation scheme of section 44ADA. 3) The presumptive taxation scheme of section 44AE.

Who can claim 44AD?

Individual assessees, Hindu Undivided Families (HUFs) and partnerships are eligible to claim deductions under Section 44AD, as long as they are Indian residents. However, limited liability partnerships (LLPs) do not fall under the purview of this section.

What is the rule of 44AD of Income-tax Act?

Section 44AD is a presumptive taxation scheme that was introduced by Income Tax Law in order to ease the tax burden on small taxpayers or assessees. Individuals who come under the provisions of this scheme need not maintain or show books of account, nor are they required to get an audit performed on the same.

Can we show more than 8% profit in 44AD?

It is to be noted that in Section 44AD, the assessee must have to declare a minimum of 8% of the Gross turnover or gross receipts as his deemed income. However, Section 44AD(1) further gives an option to the assessee to claim more than 8% in his return of Income.