ITR-4 deadline Aug 31: presumptive tax sections, who qualifies

Under the scheme, 50% of gross receipts is treated as taxable professional income. The taxpayer can declare a higher amount but cannot claim additional expenses after opting for the section. An eligible professional does not have to maintain books of account under Section 44AA for that profession or undergo a tax audit merely because of the presumptive scheme. If income declared is below 50% and total income exceeds the basic exemption limit, books and audit requirements can apply.

Section 44AE: goods carriages

Section 44AE is meant for any taxpayer, including an individual, HUF, firm, or company, engaged in plying, hiring, or leasing goods carriages. The taxpayer must not own more than 10 goods vehicles at any time during the year.

The presumptive income is treated as final business income, so regular business expenses cannot be separately deducted. A partnership firm can claim eligible deductions for partner remuneration and interest subject to applicable provisions.

Taxpayers opting for Sections 44AD and 44ADA must pay their entire advance tax liability by 15 March. For Section 44AE, there is no special concession from the normal advance-tax provisions.

The presumptive scheme is designed to make tax compliance easier for small businesses, specified professionals, and small goods-carriage operators, provided they meet the prescribed eligibility and turnover or vehicle limits.

This article is for informational and educational purposes only. Consult a qualified expert for the latest laws and regulations applicable to your situation.