Beyond the 8%: Live Webinar on Presumptive Taxation under Section 44AD

Introduction to Presumptive Taxation – Section 44AD

• Historical background and purpose
• Eligibility criteria and turnover limits
• Applicable presumptive rates (8% / 6%)
• Who can and cannot opt for Section 44AD

Myth Busters: Clearing the Fog Around 44AD

• Misconceptions about books of accounts
• 8% vs 6% – actual application
• Turnover vs Gross Receipts
• Digital receipts and reporting confusion

The Merits: Why Section 44AD is Popular

• Simplified compliance
• Audit exemption under Section 44AB
• Cost and time savings
• Encouragement for voluntary tax compliance

The Misuse: How Section 44AD is Abused in Practice

• Underreporting turnover
• Misuse by professionals & consultants
• Data mismatches with AIS/GST/26AS
• Triggering of scrutiny using AI analytics

Case Studies: Scrutiny, Litigation & Judicial View

• Key ITAT/High Court rulings and insights
• Real assessments involving misuse
• Lessons for tax professionals

Strategic Scenarios: When NOT to Opt for 44AD

• Businesses with high actual margins
• Funding & loan-sensitive businesses
• Implications of opting out after opting in

Interplay with Other Provisions & Practical Complications

• Interaction with Section 43B(h)
• Impact on TDS, Section 44AB, and other sections
• Partner’s remuneration and presumptive scheme
• Lock-in period & audit trigger on opt-out

Computation Examples & Comparative Analysis

• Normal vs Presumptive taxation outcomes
• Digital vs Cash receipt computation
• Edge cases near ₹3 crore limit

Q&A + Summary of Key Takeaway

Highlight audit risks and strategic use

Clarify real-world application

Summarize do’s and don’ts