Is 44AE compulsory?

Is 44AE compulsory?

Is Section 44AE compulsory? No, the tax scheme under section 44AE is not compulsory for any assessee. This scheme is an option and any taxpayer is free to make such a choice. Section 44AE scheme provided a few benefits like simplified taxation, relief from maintenance, and audit of books of accounts.

What is presumptive income under section 44AE?

Those opting for presumptive taxation scheme under Section 44AE can estimate their income at Rs. 7,500 per month per vehicle owned, irrespective of whether it is a light goods vehicle or a heavy goods vehicle. Taxes have to paid as per this computation.

Is Presumptive taxation mandatory?

Presumptive taxation for businesses is covered under section 44AD of the income tax act. Any business which has a turnover of less than Rs 2 crore can opt to be taxed presumptively. They must declare profits of 8\% for non-digital transactions or 6\% for digital transactions, whichever one is applicable.

What is the difference between 44AD and 44AE?

One major difference as compared to Section 44AD is that “person” in this section includes every person i.e. an individual, HUF, firm, company, etc. In case, you are adopting the provisions of section 44AE, your income will be computed @Rs. Further, you can declare income at a lower rate (i.e., at less than Rs.

How do I claim exemption under section 54?

To claim exemption under section 54, the taxpayer should purchase another house within a period of one year before or two years after the date of transfer of old house or should construct another house within a period of three years from the date of transfer.

How is 44AE income calculated?

As per the provisions of section 44AE, for Heavy Goods Vehicle, income will be computed at the rate of Rs. 1,000 per ton of gross vehicle weight for every month or part of a month during which the heavy goods vehicle is owned by taxpayer.

How do I opt for presumptive income scheme?

The presumptive taxation scheme of section 44AD can be opted by the eligible persons, if the total turnover or gross receipts from the business do not exceed Rs. 2,00,00,000. In other words, if the total turnover or gross receipt of the business exceeds Rs. 2,00,00,000 then the scheme of section 44AD cannot be adopted.

Can 44AD and 44AE be claimed together?

Section 44AD and 44AE both are applicable. In the above said case, turnover of both the business shall not be clubbed and both the business shall be chargeable to tax u/s 44AD and 44AE of the Act respectively.

How many times can you claim Section 54?

With effect from Assessment Year 2020-21, a taxpayer has an option to make investment in two residential house properties in India to claim section 54 exemption. This option can be exercised by the taxpayer only once in his lifetime provided the amount of long-term capital gain does not exceed Rs. 2 crores.