What is the manner of computation of taxable business income in case of a person adopting the presumptive taxation scheme of section 44AE? - Tax India

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Tuesday, February 20, 2018

What is the manner of computation of taxable business income in case of a person adopting the presumptive taxation scheme of section 44AE?




 What is the manner of computation of taxable business income in case of a person adopting the presumptive taxation scheme of section 44AE?

​In case of a person who is willing to opt for the presumptive taxation scheme of sections 44AE, income will be computed on an estimated basis. Income will be computed @ Rs. 7,500 per month or part thereof during which the goods vehicle is owned by the taxpayer, in the previous year. Part of the month would be considered as full month.
Note: If the actual income is higher, than the presumptive rate, i.e., higher than Rs. 7,500, then such higher income can be declared.

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