New Limit for Presumptive Taxation | 44AD | 44ADA | Income Tax | CA. Jitendra Kumar

Explained in this video new turnover limit for presumptive taxation under section 44AD for small businesses and section 44ADA for small professionals as amended by the Finance Act, 2023 which is applicable from AY 2024-25. New turnover limit under section 44AD is 3 crore and under section 44ADA is 75 lakh.

It is proposed to provide that:
• under section 44AD of the Act, for eligible business, where the amount or aggregate of the amounts received during the previous year, in cash, does not exceed five per cent of the total turnover or gross receipts, a threshold limit of three crore rupees will apply.
• under section 44ADA of the Act, for professions referred to in sub-section (1) of section 44AA of the Act, where the amount or aggregate of the amounts received during the previous year, in cash, does not exceed five per cent of the total gross receipts, a threshold limit of seventy-five lakh rupees will apply.
• the receipt by a cheque drawn on a bank or by a bank draft, which is not account payee, shall be deemed to be the receipt in cash.
• provision of section 44AB of the Act shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD of the Act or sub-section (1) of section 44ADA of the Act, as the case may be.
These amendments will take effect from 1st April, 2024 and will accordingly apply to the assessment year 2024-2025 and subsequent assessment years.
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Видео New Limit for Presumptive Taxation | 44AD | 44ADA | Income Tax | CA. Jitendra Kumar канала CA. Jitendra Kumar