Presumptive Taxation - Laptop purchased for trading

[Vij]

Clarity Regarding Presumptive Taxation (8% or more?): A ruling!

There is confusion about presumptive taxation. One view is that the tax payer is supposed to declare his actual income and 8% is the mere minimum that needs to be declared. So if the tax payer earns 25% , then the profits declared under 44AD should be 25% and not 8%. Another view is that the section was brought in especially for those tax payers who do not have the resources to compute actual profits and hence 8% is considered as the presumptive rate, and the income tax officer cannot levy a h…