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What is presumptive taxation under the Income Tax Act?

Presumptive taxation is a method of offering the profits on a presumptive basis rather than the actual basis. Under presumptive taxation, you can offer a specific percentage or fixed amount as income despite offering the actual income. For example if your Sales is 1 crore, you may offer 6% of the sales that is Rs.6 lakhs and pay tax based on that instead of offering the actual profits which may be higher say 30 lakhs. <br><br>Certain conditions are applicable for one to be eligible to opt for presumptive taxation which are detailed in sections 44 AD, 44 ADA and 44 AE.

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What is presumptive taxation under the Income Tax Act?

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  1. Presumptive taxation is a method of offering the profits on a presumptive basis rather than the actual basis. Under presumptive taxation, you can offer a specific percentage or fixed amount as income despite offering the actual income. There is no fixed price or cost for registering a Private Limited Company in India. There are a number of dependent variables that determine the cost of incorporation of a Private Limited Company in India such as the location of registered office, number of directors, amount of authorised capital etc. What is presumptive taxation under the Income Tax Act? How much does a Private Limited Company Registration cost in India?

  2. For example if your Sales is 1 crore, you may offer 6% of the sales that is Rs.6 lakhs and pay tax based on that instead of offering the actual profits which may be higher say 30 lakhs. Certain conditions are applicable for one to be eligible to opt for presumptive taxation which are detailed in sections 44 AD, 44 ADA and 44 AE.

  3. Thank you!! Whatsapp your question to us For Company Registration in Kerala, visit parpella.com

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