An assessee having business turnover or gross receipts up to `2 crore can opt to be taxed presumptively. The combined turnover of all businesses are required to be considered to check if one is eligible to adopt presumptive taxation scheme under Section 44AD.
By Chirag Nangia
I am an administrator of the wealth of my deceased father. From the estate of my deceased father I have the following taxable income.
(i) Income from banquet hall which we hire out to third parties.
(ii) Business profit from retail shop.
(iii) Income from house property being rent received from residential flats and shops given on rental basis.
The turnover and gross receipts from the first two entities is less than Rs 2 crore. In these circumstances, can I pay tax under presumptive taxation scheme under Section 44AD for those two businesses? —Ketan Ved
An assessee having business turnover or gross receipts up to Rs 2 crore can opt to be taxed presumptively. The combined turnover of all businesses are required to be considered to check if one is eligible to adopt presumptive taxation scheme under Section 44AD. Under this scheme, a sum equal to at least 8% of the total turnover or gross receipts of the business (6% in case of receipts through digital means) shall be treated as profits of such business and shall be brought to tax under ‘Profits and gains of business or profession’.
In this case, since combined turnover of the two businesses is less than Rs 2 crore, you may opt to be taxed under presumptive scheme. You shall be required to furnish particulars relating to your income in ITR-4 under the presumptive taxation scheme. Further, after the death of your father, income from inherited businesses shall be taxable in hands of the legal heir.
I have a PPF account in the post office and want to shift it to State Bank of India. What is the process for doing it?
—Jagannadha Kumar Galinkala
You have to submit an application to the post office for transferring the current PPF account to the SBI branch. Once the application is processed, the existing post office shall arrange to send the original documents such as a certified copy of the account, the account opening application, nomination form, specimen signature, etc., to SBI branch address provided by the customer, along with a cheque/DD for the outstanding balance in the PPF account. The PPF account so transferred shall be treated as a continuous account with the benefits envisaged in the PPF scheme.
The writer is director, Nangia Andersen Consulting. Send your queries to email@example.com