Non -Eligible businesses under presumptive taxation scheme of section 44AD!

General Discussions
1

Which businesses are not eligible for presumptive taxation scheme of section 44AD?

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Plying business, hiring or goods carriages

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The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses:

  • Business of plying, hiring or leasing goods carriages referred to in sections 44AE.
  • A person who is carrying on any agency business.
  • A person who is earning income in the nature of commission or brokerage
  • Any business whose total turnover or gross receipts exceeds two crore rupees.​

Apart from above discussed businesses, a person carrying on profession as referred to in section 44AA(1) ​is not eligible for presumptive taxation scheme under section 44AD.

Hope this helps.

Prabha.

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