(Sec. 44AB) Presently, certain persons carrying on business or profession need to audit their accounts compulsorily if their gross receipt is in excess of the threshold, the threshold limits are proposed to be increased as follows:
- Persons carrying on business: from Rs. 60 lakhs to Rs. 1 crore
- Persons carrying on profession : from 15 lakhs to 25 lakhs
Computation of profits and gains of business on presumptive basis
Sec. 44AD: Sec. 44AD provides that there shall be presumptive tax at the rate of 8% of the turnover/gross receipts of eligible assessee engaged in eligible business chargeable as tax under the head profits and gains of business or profession‟
New sub-sec. (6) to be inserted provides that the said Sec. will not be applicable in following cases:
(i) a person carrying on profession as referred to in Sec. 44AA (1) [i.e. Legal, medical, engineering or architectural profession or accountancy or technical consultancy or interior decoration or other notified professions ]
(ii) a person earning income in the nature of commission or brokerage
(ii) a person carrying on any agency business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
