Computation of Income on Estimated Basis in Business (sec44AD)

The provisions of section 44AD will be applicable if following conditions are satisfied:-


  1. The assessee for this purpose should be an individual, Hindu undivided family or partnership firm
  2. No deduction is allowed u/s sec-10A, 10AA ,10B,10BA, 80HH to 80RRB
  3. The assessee can engage in any business (retail or civil construction) except of business of plying, hiring, or leasing goods covered under section 44AE.
  4. 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-

  1. The assessee will have to maintain books of accounts as per section 44AA
  2. The assessee will have to gets books audited under section 44BB

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