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Presumptive taxation scheme lets the taxpayers declare their taxable revenue in a prescribed fee no matter precise profit/gains and subsequently relieves them with the burden of protecting common books of account and obtaining the similar audited.

Portion 44AD – As per Section 44AD, exactly where a taxpayer opts for presumptive taxation scheme for virtually any in the economical year he is necessary to carry on to choose for the same for future 5 many years. If he fails to take action, he will not be eligible to select presumptive taxation scheme u/s 44AD for five several years succeeding the year where he opts out. Even more, with respect to People 5 financial a long time where taxpayer is ineligible to choose presumptive taxation plan u/s 44AD, regular publications of account need to be preserved and audit shall be performed if full money exceeds basic exemption Restrict.

The limits which the taxpayer couldn’t opt for that presumptive earnings plan for five years is going to be relevant only when he declares the gains decrease than eight% or 6%.

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