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Presumptive taxation techniques to relieve modest taxpayers are supplied under Area 44AD, 44ADA and 44AE. Even though Part 44ADA is for experts Area 44AD and 44AE issues modest company taxpayers. Let us have an understanding of them intimately.

Area 44ADA delivers an easy approach to taxation for modest industry experts. Part 44ADA offers a scheme of presumptive taxation for revenue and gains arising from professions stated underneath Area 44AA(one) in the Cash flow Tax Act, 1961.

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Segment 44AD – As per Portion 44AD, in which a taxpayer opts for presumptive taxation plan for almost any from the fiscal calendar year he is necessary to continue to decide for the same for upcoming five several years. If he fails to take action, he won't be qualified to opt for presumptive taxation plan u/s 44AD for five many years succeeding the calendar year wherein he opts out. Further more, with respect to those five financial years in which taxpayer is ineligible to choose presumptive taxation scheme u/s 44AD, normal books of account must be preserved and audit shall be done if complete profits exceeds simple exemption limit.

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