The provisions of section 44AD will be applicable if following conditions are satisfied:-
- The assessee for this purpose should be an individual, Hindu undivided family or partnership firm
- No deduction is allowed u/s sec-10A, 10AA ,10B,10BA, 80HH to 80RRB
- The assessee can engage in any business (retail or civil construction) except of business of plying, hiring, or leasing goods covered under section 44AE.
- The turnover/gross receipt in previous does not exceed Rs 60 lakh Rs.
If above conditions are satisfied then income will be calculated at 8% of gross receipt or total turnover.
Is it Possible to declare lower income
The following conditions will occur if he declares lower income than the deemed profit and gain stated above-
- The assessee will have to maintain books of accounts as per section 44AA
- The assessee will have to gets books audited under section 44BB