Underneath Section 44AD of presumptive taxation, little taxpayers with below Rs 2 crore of turnover aren't essential to take care of books of accounts and their income are presumed to generally be eight% of their turnover.
Part 44AD – Standard publications of accounts are being maintained if revenue exceeds The fundamental exemption Restrict and an audit shall be carried out if disorders as per provisions of Segment 44AB are fulfilled.
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The limits the taxpayer couldn’t choose for the presumptive money plan for 5 years will likely be relevant only when he declares the earnings lessen than eight% or 6%.
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