New Threshold limits for 44AD in Budget 2023. TAXCONCEPT

In Budget 2023, the Finance Minister has announced concession in 44AD of the Income  Tax Act, 1961 which is basically related to Presumptive Taxation scheme.

Presumptive Taxation is generally for small eligible businesses that are not maintaining books, and which are related to specific taxpayers namely Individuals, HUFs, or partnership firms other than LLP, having a turnover of 2 crores or less.

Under presumptive taxation, 8% or 6% of the turnover shall be considered as profits from business and are subject to tax.

So the new amendment is that for small businesses having more than 95% of the transactions in Non cash , the threshold has been increased to 3 crores.

So, in conclusion

a)       3 cores limit under presumptive taxpayers having more than 95% of transactions in Non Cash.

b)      For the above rule, the threshold limit has been increased to 3 crores

c)       This new rule is ap

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