The scheme of section 44AD is designed to give relief to small assessees engaged in any business (except the business of plying, hiring or leasing of goods carriages referred to in section 44AE)
Particulars | Section 44AD | Section 44AE |
44ADA |
Eligible taxpayer | Resident Individual, Resident HUF, Resident Partnership firm (excludes LLPs) and Who has not claimed any profit linked deductions (i.e., Section 10A, 10AA, 10B, 10BA) and deductions under Section 80HH to 80RRB |
Any taxpayer who owns not more than 10 goods carriages at any time during tax year “Owns” also means goods carriage taken on hire or installment where the amount payable is still due |
Resident taxpayer |
Eligible business/ profession | Any business other than business covered under Section 44AE | Business of plying, hiring or leasing of goods carriages | Legal, medical, engineering or architectural, accountancy profession, technical consultancy, interior decoration or any other profession notified by the Board in the official gazette |
Monetary threshold | Total turnover or gross receipts not exceeding Rs 2 crores | Not applicable | Total gross receipts not exceeding Rs 50 lakhs |
Prescribed / presumptive income |
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Rs 7500 per goods carriage for every month or part of the month during which the goods carriage is owned by the taxpayer in the tax year
Or Amount claimed to be actually earned |
50% of total gross receipts in a tax year |
Person specifically excluded |
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Not applicable | Not applicable |
Additional provisions |
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Payment of advance tax | Entire advance tax can be paid by last installment of advance tax i.e., 15 March of a year In case of failure to do so, interest is leviable @ 1% on shortfall as per Section 234C |
No concession in payment of advance tax. Same shall be paid in four installments as per advance tax provisions | Entire advance tax can be paid by last installment of advance tax i.e., 15 March of a year In case of failure to do so, interest is leviable @ 1% on shortfall as per Section 234C |
Note: Any amount paid by way of advance tax on or before 31st day of March shall also be treated as advance tax paid during the financial year ending on that day.