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Section 44AD presumptive applies to:
AEligible business with turnover up to Rs. 2 crore (Rs. 3 crore if 95% digital)
BAll businesses
COnly retail trade
DOnly manufacturing (per relevant Section) (per relevant Section)
Answer & Solution
Correct answer: A. Eligible business with turnover up to Rs. 2 crore (Rs. 3 crore if 95% digital)
1. Section 44AD covers eligible business with turnover up to Rs. 2 crore.
2. Finance Act 2023: limit Rs. 3 crore if cash receipts up to 5%.
3. Income presumed at 8% (or 6% digital). Once opted out, no opt-in for 5 years.
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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