Looking for growing the routes for the market but plunge by maintaining the balance sheet? Or a freelancer who has no time for maintaining the balance sheet? If the solution is yes then the burden for conserving the tax are often released and one doesn’t need to worry during the tax filing season.<\/p>\n
What Is A Presumptive Taxation Scheme (PTS) Scheme?<\/strong> Businesses not included under presumptive taxation scheme<\/strong> Apart from the above-discussed businesses, an individual carrying on profession as mentioned in section 44AA (1) isn’t eligible for a presumptive taxation scheme.<\/p>\n Features of Presumptive Tax Scheme for Businesses and Professionals<\/strong> What are taxable Profits and Gains?<\/strong> Looking for growing the routes for the market but plunge by maintaining the balance sheet? Or a freelancer who has no time for maintaining the balance sheet? If the solution is yes then the burden for conserving the tax are often released and one doesn’t need to worry during the tax filing season. What Is …<\/p>\n","protected":false},"author":1,"featured_media":441,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[129],"tags":[169,166,168,167,165,170],"class_list":["post-440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation","tag-businesses-not-included-under-presumptive-taxation-scheme","tag-computation-of-income-and-presumption-of-rates-of-income-under-section-44ad","tag-features-of-presumptive-tax-scheme-for-businesses-and-professionals","tag-presumptive-taxation-scheme-under-section-44ad","tag-what-are-taxable-profits-and-gains","tag-what-is-a-presumptive-taxation-scheme-pts-scheme"],"yoast_head":"\n
\nThe Presumptive Taxation Scheme, according to sections 44AA of the Income tax Act 1961, was launched for relieving the small businessman and the professionals from managing the book of accounts. At a prescribed rate they allow to declare the entire taxable earnings.<\/p>\n
\nThe scheme of section 44AD is formed to give relaxation to small taxpayers engaged in any business, except the following companies:<\/p>\n\n
\n
\nFor Businesses Eligible for Section 44AD<\/strong>
\nBusinesses as listed under 44AD within the above table can avail Presumptive Tax Scheme only their total turnover\/gross receipts are but INR 2 crore. In that case,
\nNet Income is computed as presumptive basis @ 8% of the turnover\/gross receipts in cash.
\nIn case of digital receipts, it is computed @ 6% (from AY 2017-18 onwards). This profit are going to be considered because the income under \u2018Profits and Gains of Business\/Profession\u2019 and counted as final taxable income.
\nComputation of income and presumption of rates of income under section 44AD<\/strong><\/p>\n\n
\nAs per the section 44AD an assessee who opted for presumptive taxation will compute his income as 8% of the total turnover or gross receipts of the last year. An amount above the previously computed amount as presumptive income claimed by an assessee shall be termed as gains and profits of the business that’s chargeable to tax under the head “Profits and gains of business or profession”.<\/p>\n","protected":false},"excerpt":{"rendered":"