Presumptive Taxation Hand written Notes – Section 44AD Notes

Presumptive Taxation Hand written Notes: Concept of taxation according to which income tax is based on "average" income instead of actual income. As per sections 44AA of the Income-tax Act, 1961, a person engaged in business is required to maintain regular books of account under certain circumstances. To give relief to small taxpayers from this tedious work, the Income-tax Act has framed the presumptive taxation scheme under sections 44AD, sections 44ADA and sections 44AE. A person adopting the presumptive taxation scheme can declare income at a prescribed rate and, in turn, is relieved from tedious job of maintenance of books of account. This file is submitted by "Pradeep"