Finally turn over 1 crores
Gross receipts 50 lakhs ….??
AY 2017-18 applicable turn over 2 crores….
Every person –
- carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds 1 crore rupees in any previous year.
- carrying on profession shall, if his gross receipts, in profession exceed 50 lakhs rupees in any previous year,
Deemed Profits 44AE / 44BB / 44 BBB
(c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AE or section 44BB or section 44BBB as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year,
44AE- Plying / Hiring / Leasing Goods Carriage (For Small Transporters) 44BB- Business of Exploration etc. of Mineral Oils (For Non-Resident Mineral Oil Explorers) 44BBB-Foreign Companies Engaged in Business of Civil Constructions Deemed Profits 44ADA
(d) carrying on the profession shall, if the profits and gains from the profession are deemed to be the profits and gains of such person under section 44ADA, and he has claimed such income to be lower than the profits and gains so deemed to be the profits and gains of his profession and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year, or
(For professionals where gross receipts doesn’t exceed 50 lakhs, they can pay tax on presumptive profit of 50% under 44ADA) Deemed Profits 44AD
(e) carrying on the business shall, if the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year, (For assesses where business turnover is not exceeding 2 crores, they can pay tax on presumptive basis of 8% under 44AD and 6% in case of electronic receipts)
- What if turnover is above 1 crore up to 2 crores?
Individual / HUF / Partnership (Excluding LLP) – either go on presumptive basis or get your books audited under clause (e), (Interpretation rule specific overrides general, not using presumptive when eligible will be covered in 44AD. Others– Company / Co-Operative etc. – Tax Audit under clause (a)