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No, it is not compulsory to decide Segment 44AE, it can be optional, if you decide for standard provisions, Then you really may need to keep up textbooks of accounts and get the same audited.
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Underneath the cash flow tax legislation, an individual engaged in prescribed organization or job is necessary to mandatorily keep guides of account, put together economic statements and get his accounts audited. Further, financial gain/loss as per this kind of fiscal statements would be thought of to arrive at taxable revenue following building necessary adjustments.
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The limit is improved to INR seventy five lakhs if the entire amount of money acquired in cash won't exceed five percent of the full gross 44 cash receipts of such past 12 months.
No other deductions for business enterprise fees that are frequently authorized is often claimed eg. depreciation, hire, administrative expenditures and many others
A cash counting calculator can be utilized in lots of cases that have to have you to locate a whole sum of cash and can certainly be utilized for any of the following:
In spite of choosing presumptive scheme under part 44ADA, taxpayer can assert area 80 tax saving deductions and investments.
Extending the repayment phrases of a mortgage might end in additional fascination paid, along with late expenses, that may enormously improve the overall amount of money you pay back back again with a bank loan. Most often, bank loan renewal insurance policies are regulated through the point out governing administration. Find out more about your states insurance policies in regard to bank loan renewal, and carefully examine the lender’s terms ahead of signing a loan agreement.
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In the above case, Mr Ram can select presumptive taxation Should the tax is compensated on fifty% of gross receipts. That's why, Ram can prefer to fork out tax underneath the presumptive plan of taxation less than part 44ADA.