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Disclaimer: The contents of this text are for data purposes only and doesn't constitute an advice or a lawful opinion and so are personalized views from the author. It relies upon related regulation and/or info readily available at that point of time and prepared with due accuracy & trustworthiness
Anyone carrying on qualified organization or career underneath Part 44AD or 44AE or 44ADA and promises financial gain reduced in comparison to the prescribed earnings, is just not allowed to take pleasure in the relief provided for maintenance of guides of account and audit.
e. 5% of aggregate of each of the quantities been given along with Most Cash Payment limit i.e. five% of combination of the many payments throughout the yr. Thus, assessee has to help make specific calculations for examining the applicability of Tax Audit.
In accordance with Portion 44ADA, a freelancer who may have picked the Presumptive Scheme is necessary to declare fifty% in their gross income as profits. It's feasible to report income for a predetermined proportion of receipts with out maintaining any accounting documents.
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Presumptive taxation scheme lets the taxpayers declare their taxable profits in a prescribed rate irrespective of genuine gain/gains and consequently relieves them from your burden of retaining typical textbooks of account and getting the exact same audited.
In spite of choosing presumptive plan below segment 44ADA, taxpayer can declare segment eighty tax saving deductions and investments.
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If an assessee fulfills any of the next standards, then they have to keep books of accounts and acquire accounts audited less than section 44AB:
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