CHAPTER III
DIRECT TAXES
Income-tax
Amendment of section 44AD.
15. In section 44AD of the Income-tax Act [as amended by section 20 of the Finance (No. 2) Act, 2009][ 33 of 2009.], in the Explanation, in clause (b), in sub-clause (ii), for the words "forty lakh rupees", the words "sixty lakh rupees" shall be substituted with effect from the 1st day of April, 2011.
Notes on Clauses:
Clause 15 of the Bill seeks to amend section 44AD of the Income tax Act relating to special provision for computing profits and gains of business on presumptive basis.
The existing sub-clause (ii) of clause (b) of the Explanation to the aforesaid section defines the term "eligible business" to mean any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE and whose total turnover or gross receipts in previous year does not exceed forty lakh rupees
for the purpose of computing profits and gains of business on presumptive basis.
It is proposed to enhance the said limit from forty lakh rupees to sixty lakh rupees.
This amendment will take effect from 1st April, 2011, and will, accordingly, apply in relation to the assessment year 2011-2012 and subsequent years.
