Tax incentives for small traders accepting digital payments

Under section 44AD of the Income-tax Act, 1961,for certain assessees carrying on any business (other than transportation, agency, brokerage and commission) and having a turnover of up to ₹2 crore, the profit is deemed to be 8 per cent of the total turnover.

The Ministry said the required legislative amendment will be carried out in the Finance Bill 2017 which will be tabled with the Union Budget 2017-18.

It however, said the existing rate of deemed profit of 8 per cent will continue to apply on total turnover or gross receipts received in cash.

Credits The Hindu Business Line

Leave a Reply

Your email address will not be published. Required fields are marked *