Presumptive Taxation u/s 44AD and 44ADA

Income Tax Income from Business or Profession
142

Thanks @Muskan_Balar for your answer.

Could you please give reference/links to prove that Salary/remuneration deduction is allowed after 50% profit under 44 ADA for partnership firm?

Thanks in advance.

143

Waiting for update.
Thanks

144

Hello @love4u_now

No deduction is allowed after computing Income under the head PGBP at 50% of Gross receipts under section 44ADA.

Thus, it is deemed that remuneration to partner and interest if any has been covered in the 50%.

Thank you.

145

Hi, im a future and option trader. im looking to find ways to reduce tax and learned about Presumptive Taxation, so i have a question about it.

lets say if fno traders turnover is 1crore and made profit of 50 lakh, so under Presumptive Taxation does he have to pay tax only for 6% of 1cr, so his income reported as only 6lk not 50lk under this scheme?

146

Hello @Joe

Section 44AD states that taxpayer needs to report profit higher of the 2 below:

  1. Actual Profit
  2. 6% of Turnover

Since F&O trading is an online activity where actual profit can be easily derived from the broker statements, we would not advise to opt for Section 44AD.

We recommend preparing books of accounts and filing ITR 3 for F&O business.

Thank you.