GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1 % of gross receipts
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5 % of gross receipts
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8 % of gross receipts
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10 % of gross receipts
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Detailed explanation-1: -Section 44AD is a presumptive taxation scheme, income will be calculated on the basis of 8% of the turnover( 6% in case of digital receipts and payments) and the taxpayer has a relief for not maintaining the books of account .
Detailed explanation-2: -Business and Profession Income. Presumptive Taxation Scheme. Section 44AD. Last updated on February 14th, 2023. To provide relief to small taxpayers from the tedious task of maintaining books of accounts and getting books of accounts audited, the CBDT had introduced the Presumptive Taxation Scheme.
Detailed explanation-3: -Audit u/s 44AB is applicable if he is declaring income lower than thereafter specified u/s 44AD. But, section 44AD is not applicable to Agency, Commission and Brokerage. Hence, he can declare income less than 8%.