# Can I opt for Presumptive taxation 44AD in this case
**URL:** https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698
**Category:** Taxation
**Created:** [May 5, 2023, 2:20am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698 "2023-05-05T02:20:05Z")
**Posts on this page:** 20
**Page:** 2
### Author:  [@gpkallu](https://tradingqna.com/u/gpkallu)
#### Post date: [February 26, 2024, 6:11am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/21 "2024-02-26T06:11:27Z")
Thank you @Quicko for clear clarifications.
This helps 👍
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### Author:  [@Zoom456](https://tradingqna.com/u/Zoom456)
#### Post date: [February 29, 2024, 1:09am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/22 "2024-02-29T01:09:11Z")
Where is it written under 44AD “whichever is higher” has to be declared as income?
It however says “sum higher than the aforesaid sum **claimed to have been earned by the eligible assessee** “. Here the assessee has option to claim that he/she has earned more than 6 or 8% of turn over.
Where does it mandates declaring actual profit at all? Please be specific with reference from existing law and judgements?
Also, on opting 44AD, no further deductions are available under section 30 to 38 of IT Act. Then what is the logic behind declaring actual income under 44AD when you are not getting deductions benefits?
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### Author:  [@entice](https://tradingqna.com/u/entice)
#### Post date: [February 29, 2024, 7:55am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/23 "2024-02-29T07:55:42Z")
@Quicko please confirm if this is true for section 44AD? For this FY (2023-24)
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### Author:  [@Private](https://tradingqna.com/u/Private)
#### Post date: [February 29, 2024, 9:23am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/24 "2024-02-29T09:23:38Z")
There is a condition to it. all the transactions should be done via banking channels.
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### Author:  [@Quicko](https://tradingqna.com/u/Quicko)
#### Post date: [February 29, 2024, 3:08pm UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/25 "2024-02-29T15:08:20Z")
Hey @entice,
Yes, the turnover limits have been updated in Budget 2023 and will be applicable for FY 23-24.
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### Author:  [@Sumit\_Lehri](https://tradingqna.com/u/Sumit_Lehri)
#### Post date: [March 2, 2024, 12:40am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/26 "2024-03-02T00:40:22Z")
I have one question…If we take section 44AD for share market income and show profit at let suppose 9 percent and actual profit is way more than that…How Income tax will know about it…We are not suppose to maintain any books of accounts…Even if we can get Actual income from broker…How income tax authority can compute actaul expenses as bank stat will have personal and business related expenses both in same statement and we are not rquired to maintain books under 44AD…So there is no way itr authority can compute actual expenses that too after many years later…What is your take in this.
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### Author:  [@entice](https://tradingqna.com/u/entice)
#### Post date: [March 2, 2024, 3:16am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/27 "2024-03-02T03:16:15Z")
Income tax authorities will get all info from your demat accounts.
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### Author:  [@Sumit\_Lehri](https://tradingqna.com/u/Sumit_Lehri)
#### Post date: [March 2, 2024, 3:31am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/28 "2024-03-02T03:31:22Z")
But how will they get info of expenses as we are not required to maintain books of accounts
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### Author:  [@Sumit\_Lehri](https://tradingqna.com/u/Sumit_Lehri)
#### Post date: [March 15, 2024, 7:14pm UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/29 "2024-03-15T19:14:26Z")
If an assesse is not suppose to maintain books of account under section 44AD then how will he able to determine actual profit… even if we can determine actual profit form brokers report , but then why we are suppose to compute actual expenses incurred as there is no requirement of maintaining books of accounts
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### Author:  [@Quicko](https://tradingqna.com/u/Quicko)
#### Post date: [March 21, 2024, 2:06pm UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/30 "2024-03-21T14:06:59Z")
Hey @Sumit_Lehri
The assessing officer may retrieve the data on profit from the broker statement. In case you want to claim the expenses, it is your liability to submit the proofs in case of any scrutiny.
In failure to do so, the AO may pass the order assessing the profit as your income.
You can also connect to a tax professional for a second opinion on the same.
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### Author:  [@pyarlath](https://tradingqna.com/u/pyarlath)
#### Post date: [March 22, 2024, 5:10am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/31 "2024-03-22T05:10:10Z")
@Quicko If a trader wants to do it right and maintains books as well such that CA can audit and certify it, what needs to be done apart from Broker’s PnL statement we have?
What i keep hearing from C.A is they required to prepare balance sheet of all the accounts a trader has even when they are not linked with Broker is this true?
So the question simply put, we want to follow all laws and CA audits no section 44AD etc what all should a trader maintain to make things right at the end of financial year…?
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### Author:  [@curiousvi](https://tradingqna.com/u/curiousvi)
#### Post date: [March 30, 2024, 9:10pm UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/32 "2024-03-30T21:10:14Z")
> [@Quicko](#):
>
> However, if your actual profits are higher than 6%/8% you must pay tax on the same.
Can you please give me a link on income tax website that says it has to be 6 or 8% of total turnover or actual profit ???
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### Author:  [@Quicko](https://tradingqna.com/u/Quicko)
#### Post date: [April 1, 2024, 11:08am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/33 "2024-04-01T11:08:31Z")
Hey @curiousvi,
It is always recommended to disclose your actual income even if you opt for the presumptive taxation scheme.
You can also connect to a tax professional for a second opinion on the same.
Hope this helps!
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### Author:  [@curiousvi](https://tradingqna.com/u/curiousvi)
#### Post date: [April 1, 2024, 10:21pm UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/34 "2024-04-01T22:21:28Z")
Did you read what I requested? give me a link on reliable website that mentions the law — where it says - either 6% of turnover or actual income whichever is higher
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### Author:  [@Anshul\_bishnoi](https://tradingqna.com/u/Anshul_bishnoi)
#### Post date: [June 12, 2024, 12:43pm UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/35 "2024-06-12T12:43:04Z")
Their whole argument seems flawed, the basic reason for presumptive taxation is to do away with the need for accounting, the 6% amd 8% limit is there because it is automatically assumed that the other 94 or 92% are expenses and even court verdict has said if the person is forced to give the breakdown of that 92% expenses then the whole notion of presumptive taxation is defeated. Yes broker can give our profit bt it can not state our expenses. Which ideally should be deducted from the income to calculate tax liability.
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### Author:  [@Quicko](https://tradingqna.com/u/Quicko)
#### Post date: [June 12, 2024, 2:23pm UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/36 "2024-06-12T14:23:33Z")
Hey @Anshul_bishnoi @curiousvi,
There can be different views and opinions on this matter. The Income-tax utility mentions that you have to report either 6% of your turnover or actual profits, whichever is higher when you are opting for the presumptive taxation scheme. Here’s a screenshot for your reference:
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### Author:  [@Anshul\_bishnoi](https://tradingqna.com/u/Anshul_bishnoi)
#### Post date: [June 12, 2024, 3:41pm UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/37 "2024-06-12T15:41:10Z")
Understood. Thankyou for the clarification.
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### Author:  [@VijayNair](https://tradingqna.com/u/VijayNair)
#### Post date: [June 13, 2024, 5:13am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/38 "2024-06-13T05:13:31Z")
@Quicko
These IT guys have a knack of keeping it vague 😬
> “Amount claimed to have been earned” instead of “Amount earned”
Makes it seem like a choice, like its a donation 😅
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### Author:  [@curiousvi](https://tradingqna.com/u/curiousvi)
#### Post date: [July 8, 2024, 8:30pm UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/39 "2024-07-08T20:30:51Z")
Where did you get this image/screenshot ? do you have any website link to go to ?
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### Author:  [@Quicko](https://tradingqna.com/u/Quicko)
#### Post date: [July 9, 2024, 10:32am UTC](https://tradingqna.com/t/can-i-opt-for-presumptive-taxation-44ad-in-this-case/146698/40 "2024-07-09T10:32:34Z")
Hey @curiousvi,
This is from the income tax utility. If you file your ITR on the Income Tax Portal and go for the presumptive taxation scheme, you’ll be able to see the screen.
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