Below Area 44AD of presumptive taxation, little taxpayers with below Rs two crore of turnover will not be required to maintain textbooks of accounts as well as their income are presumed for being 8% of their turnover.
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If a taxpayer adopts a presumptive tax scheme, he or she will not be essential to maintain any guides of accounts under portion 44AD. He or she just should declare their presumptive revenue on the basis of six% or 8% (as relevant)of the overall turnover or gross receipts of past 12 months
The overall gathered turnover that every one the companies gain through the system on the financial years shall be taken into consideration when declaring deductions beneath Part 44AD.
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Section 44AE – Standard books of account shall be preserved and audit shall be carried out no matter turnover or income.
Notice: Any total paid out Through advance tax on or right before 31st day of March shall even be taken care of as advance tax paid out throughout the financial 12 months ending on that day.
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Be sure to note that five several years shall be counted starting up the year wherein you first file typical taxes (ITR-3) for this sort of company. The government is discouraging the taxpayers who misuse the scheme and frequently transform their possibilities frequently.
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