Section 43C Special provision for computing profits and gains of retail business:
Section 43C of the Income Tax Act, 1961 provides a special provision for computing profits and gains of a retail business. It applies to taxpayers engaged in the business of retail trading of goods or merchandise.
Under this provision, the taxable income of the retail business is computed based on a percentage of the total turnover or gross receipts. The percentage is determined by the Central Government and notified in the Official Gazette. The objective is to simplify the tax computation process for retail businesses by providing a presumptive basis for taxation.
Section 44AD Presumptive taxation scheme for certain businesses:
Section 44AD offers a presumptive taxation scheme for eligible small businesses. It applies to individuals, Hindu Undivided Families (HUFs), and partnerships (excluding LLPs) with a turnover or gross receipts up to a specified limit.
Under this scheme, eligible taxpayers can declare a certain percentage of their total turnover or gross receipts as their taxable income. The percentage varies depending on the nature of the business. If the taxpayer opts for the presumptive taxation scheme under Section 44AD, they are not required to maintain detailed books of accounts. However, they are deemed to have earned a minimum profit, and the specified percentage is considered their taxable income.
Section 44AE Presumptive taxation scheme for goods carriage owners:
Section 44AE provides a presumptive taxation scheme for taxpayers engaged in the business of plying, hiring, or leasing goods carriages. This provision applies to individual owners of goods carriages (excluding partnership firms and companies).
Under this scheme, the taxable income of goods carriage owners is computed based on a deemed income per vehicle. The income per vehicle is determined by the Central Government and notified in the Official Gazette. The deemed income is considered the taxable income of the taxpayer, and they are not required to maintain detailed books of accounts.
Section 44AF Presumptive taxation scheme for retail traders:
Section 44AF offers a presumptive taxation scheme for small retail traders. It applies to individuals, HUFs, and partnerships (excluding LLPs) engaged in the business of retail trading of specified goods.
Under this scheme, eligible taxpayers can declare a percentage of their total turnover or gross receipts as their taxable income. The specified percentage varies depending on the nature of the business. Taxpayers opting for the presumptive taxation scheme under Section 44AF are not required to maintain detailed books of accounts. Instead, the specified percentage of turnover or gross receipts is considered their taxable income.
Section 44ADA Presumptive taxation scheme for professionals:
Section 44ADA provides a presumptive taxation scheme for professionals such as doctors, lawyers, architects, engineers, and accountants who have opted for the “specified professions.”
Under this scheme, eligible professionals can declare a certain percentage (50% of gross receipts) as their taxable income, and they are not required to maintain detailed books of accounts. This scheme simplifies the tax compliance process for professionals by providing a presumptive basis for taxation.
Section 44BB Presumptive taxation scheme for non-resident persons engaged in the business of exploration, etc., of mineral oils:
Section 44BB applies to non-resident taxpayers engaged in the business of providing services or facilities in connection with the prospecting for, or extraction or production of, mineral oils.
Under this provision, the taxable income of non-resident taxpayers is computed at a prescribed percentage (10%) of the amount received or receivable from such activities. This scheme provides a simplified method for computing taxable income for non-resident taxpayers engaged in the specified activities.
Section 44BBA Presumptive taxation scheme for non-resident sportsmen and sport associations:
Section 44BBA applies to non-resident sportsmen and sports associations or institutions who participate in sports events in India.
Under this provision, a specified percentage (20%) of the total income derived from participating in sports events in India is deemed to be taxable income. This scheme simplifies the taxation process for non-resident sportsmen and sport associations by providing a presumptive basis for taxation.
Section 44BBB Presumptive taxation scheme for non-residents providing services or facilities for the prospecting, etc., of certain minerals:
Section 44BBB applies to non-resident taxpayers engaged in the business of providing services or facilities in connection with the prospecting for, or extraction or production of, certain minerals.
Under this provision, the taxable income of non-resident taxpayers is computed at a specified percentage (10%) of the amount received or receivable from such activities. This scheme simplifies the tax computation process for non-resident taxpayers engaged in the specified activities.