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About This service

When a person engaged in business or profession is required to maintain regular books of account and further, he has to get his accounts audited. To give relief to small taxpayers from this tedious work, the Income-tax Act has framed the presumptive taxation scheme under sections 44AD, 44ADA and 44AE.
Consult MyTax is designed to give you all kinds of help and suggestion for the services under this law. The plan is designed to get the benefit of presumptive tax assessment to minimize the requirement of maintaining books of accounts and get audited by declaring profit at specified rate of turnover/receipts (rates is mentioned in the tax law) Businesses having annual turnover under Rs. 2cr and declaring income above 8% &Professionals & Freelancers having annual gross receipts under Rs. 50 lakh and declaring income above 50%

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Includes/exclude

in service

  • Tax returns Filing

Whom

it’s beneficial

  • Business person or professionals who is
    Having Income from Business having annual turnover under Rs. 2cr and declaring income at 8% or above (no audit required)
    or
    Having income from Professionals & Freelancers having annual gross receipts under Rs. 50 lakh and declaring income at 50% or above (no audit required)
  • Any other person having casual income like tuition income, interest income etc.

Process

  • Purchase plan
  • Provide details about the income
  • Provide Scan documents of income earned and tax deducted
  • Provide Explanation of transactions (If needed) to understand it properly
  • Let us check and provide you detailed computation report
  • Give confirmation on the computation report to file the return
  • get return copy

Information/Documents

needed

  • Bank statements for the financial year
  • Income and Expense statements
  • Gross Receipts

Other Information

When a business opts for PTS, it can estimate its income at 8% of the total turnover for AY2017-18. If the turnover of the business was Rs1.5 crore in FY2016-17, its income chargeable to tax under PTS would be Rs12 lakh (8% of Rs1.5 crore). However, the assesse is allowed to declare income at a higher rate than the minimum prescribed limit of 8% of the total turnover.

Who can opt for PTS?

Resident Hindu Undivided Families (HUFs) and resident partnership firms can opt for this scheme. However, limited liability partnership (LLP), businesses that claim benefits for being located in special economic zones or backward areas, and those whose income is from commission or brokerage fees (such as insurance agents or mutual fund advisers) cannot adopt this scheme.

From AY2017-18, the scheme will cover businesses with a total turnover of less than Rs2 crore during a financial year. Those in the business of plying, hiring or leasing goods carriages can avail PTS under section 44AE of the Act.

Which businesses not covered under the presumptive taxation scheme of section 44AD?

The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses:

> Business of plying, hiring or leasing of goods carriages referred to in section 44AE.

> A person who is carrying on any agency business.

> A person who is earning income in the nature of commission or brokerage.

Apart from above discussed businesses, a person carrying on profession as referred to in section 44AA(1)is not eligible for presumptive taxation scheme.

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