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The limit is elevated to INR 75 lakhs if the full volume acquired in cash isn't going to exceed 5 percent of the total gross receipts of these types of former 12 months.
In case the professionals assert their revenue to become fewer than 50% in their gross overall receipts and also if they exceed the the limit of gross receipt, then they cannot select presumptive taxation.
In accordance with Segment 44ADA, a freelancer who may have chosen the Presumptive Plan is required to declare 50% in their gross profits as profits. It can be feasible to report financial gain being a predetermined proportion of receipts without having sustaining any accounting data.
Part 44ADA is actually a Unique provision for calculating the taxable earnings for modest pros in specific situations.
In the above illustration, the full receipt is below the revised/amplified presumptive limit of Rs. 75 lakh and the cash receipt is below 5% of the full receipts.
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Area 44ADA – Standard textbooks of accounts are to generally be managed and get them audited if earnings exceeds simple exemption limit.
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