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Section 44ADA is often a Unique provision for calculating the taxable revenue for little pros in certain conditions.
In the above situation, Mr Ram can go for presumptive taxation In case the tax is paid on fifty% of gross receipts. Consequently, Ram can decide to pay tax beneath the presumptive plan of taxation under portion 44ADA.
Pros outlined while in the portion can pay tax on their gross receipts less than area 44ADA, and they can go for this plan provided that their total income would not exceed Rs.seventy five lakhs/50 lakhs.
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In this article, we are able to Evaluate his taxable cash flow less than usual provisions along with the presumptive scheme as underneath:
In case the gurus claim their income to be lower than fifty% of their gross complete receipts and also when they exceed the the limit of gross receipt, then they can not go for presumptive taxation.
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