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In the above situation, Mr Ram can select presumptive taxation When the tax is compensated on 50% of gross receipts. As a result, Ram can choose to pay tax beneath the presumptive plan of taxation beneath portion 44ADA.
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six% of overall turnover or gross receipts of a tax yr obtained by account payee cheque/bank draft, ECS by means of banking account on or in advance of thanks day of filing the return of revenue
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The created down worth (WDV) of belongings for tax functions shall be calculated as of your depreciation has long been authorized annually. This WDV can be the value of the asset for tax purposes inside a situation exactly where the asset is offered later on because of the assessee.
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Exactly what is presumptive taxation? A presumptive taxation is often a process through which a authorities assumes a specific proportion of your turnover/gross receipts as your taxable profits irrespective of the fees incurred.
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Segment 44AD – Frequent publications of accounts are to be preserved if income exceeds The fundamental exemption Restrict and an audit shall be carried out if ailments According to provisions of Segment 44AB are fulfilled.