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Section 44AE – Typical guides of account shall be preserved and audit shall be carried out no matter turnover or money.
Taxpayers declare revenue in a prescribed level despite precise income. It truly is relevant below Segment 44AD, 44AE, and 44ADA for differing kinds of taxpayers and professions.
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However, the greater Restrict will probably be offered provided that the cash receipt won't exceed five% of the entire receipt in the business or job as the case could possibly be.
Presumptive taxation scheme allows the taxpayers declare their taxable profits in a prescribed charge regardless of actual financial gain/gains and in turn relieves them with the burden of sustaining typical textbooks of account and getting the exact same audited.
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In the above mentioned circumstance, Mr Ram can choose presumptive taxation When the tax is paid on fifty% of gross receipts. Therefore, Ram can prefer to spend tax underneath the presumptive plan of taxation beneath section 44ADA.
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