Partnership firms (Observe that minimal liability partnerships usually are not suitable to go with Portion 44ADA)

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Precisely what is presumptive taxation? A presumptive taxation is actually a procedure by which a federal government assumes a specific percentage of the turnover/gross receipts as your taxable income no matter the costs incurred.

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In case of Area 44AE, if taxpayer is usually a partnership company, wage and desire paid to companions is website allowed as deduction from prescribed money previously mentioned

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Whole advance tax can be paid out by past installment of progress tax i.e., 15 March of a year, in case of failure to take action, interest is leviable @ one% on shortfall as per Section 234C

In the above situation, Mr Ram can go for presumptive taxation if the tax is paid out on 50% of gross receipts. That's why, Ram can opt to spend tax beneath the presumptive plan of taxation underneath section 44ADA. 

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