Amendment of section 44AF
22. In section 44AF of the Income-tax Act, after sub-section (5), the following sub-section shall be inserted, namely:—
"(6) Nothing contained in this section shall apply to any assessment year beginning on or after the 1st day of April, 2011.".
Notes on Clauses:
Clause 22 of the Bill proposes to omit section 44AF of the Income-tax Act relating to special provisions for computing profits and gains of retail business.
The existing provisions contained in the said section provides that for estimating income of an assessee who is engaged in the business of retail trade in any goods and merchandise, at a sum equal to five per cent. of the total turnover in the previous year on account of such business, or, as the case may be, a sum higher than the aforesaid sum as may be declared by the assessee in his return of income.
It is proposed to insert sub-section (6) to the said section which provides that the provisions of the said section shall not apply to any assessment year beginning on or after 1st April, 2011, in view of the substitution of section 44AD vide clause 20 of the Bill. This amendment will take effect retrospectively from 1st April, 2009.
