Hello,
I want to start a youtube channel & expect to start earning from it via ad revenue after a few months. I had some basic questions:
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I want to avail taxation under 44AD. Can I avail that under my name while receiving payments in my savings account? Or is it mandatory to set up a sole proprietorship & open current account in business name for the same? (I don’t have any business or sole proprietorship at the moment).
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Suppose actual profit is more than 6% of revenue (all payments received digitally) i.e. suppose actual profit is 35% this year. So under 44ad should I show actual profit i.e. 35% or the minimum allowed i.e. 6%?
Hey @rajpritam45 ,
1.For your sole-proprietorship business, It is mandatory to open current account in business name for the business.
2.Under section 44AD, it is compulsory to show minimum 6% income of the turnover or actual whichever is higher. So, it is advisable to show actual profit and pay tax on the same. You may read about 44AD here.
Hope it helps.
I want to know the applicability for proprietorship and partnership involved in design, sale and rental of specialised construction equipment.
Turnover is less than Rs.2Cr, are there any hassles to apply under presumptive taxation and charge at 6% of Gross Receipts
If assume gross receipts exclude GST on rent or sale. I am also assuming GST is not part of the topline or revenue when you compute P&L
Some occasional mentions where AO still asks for books of accounts despite being under Section 44. Is that easily defendable, esp if there is a likelihood that actual profits are above 10%
If partnership (under Section 44), is the net income of the partnership taxed at 6% and then post tax, the profit which then gets distributed to individual partners are tax free in their income statement?
Elaborate the deductible for a firm, is interest and salary to partners deductible before computing presumptive taxes?