Home › CA Final › taxation › Profits and Gains of Business or Profession › Section 44AD presumptive applies to:
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"_
Related questions
Which statement about the deductibility of Securities Transaction Tax (STT) and CommoditieA firm's net profit is Rs 17,00,000 before deducting partner salary of Rs 9,60,000, deprecA tyre manufacturer (opted out of the default regime) instals plant and machinery of Rs 12Unpaid interest of Rs 45,00,000 due to a State Financial Corporation and a bank was converA trader's turnover for P.Y. 2025-26 is Rs 8 crore. Cash receipts are 3 per cent of total An eligible 44AD assessee has turnover of Rs 2,98,50,000, of which Rs 14,00,000 was receivA car purchased on 10.8.2022 for Rs 5,25,000 for personal use was brought into professionaA company claimed Rs 50,00,000 under section 35AD for a warehouse building in A.Y. 2025-26