Mr. Balwant, a resident individual, engaged in retail trade, reports a turnover of ₹2,97,50,000 for financial year 2024-25. The amount received in cash during the PY 2024-25 is ₹13,50,000 and balance through prescribed e

Under the normal provisions of the Income-tax Act, taxable business income will be computed after allowing deduction in respect of expenses which are deductible as per the Income-tax Act and after disallowing expenses which are not deductible as per the Income-tax Act. In case of a person who is opting for the presumptive taxation scheme of section 44AD, the provisions of allowance/disallowances as provided for under the Income-tax Act will not apply and income computed at the presumptive rate of 6% or 8% (as the case may be) will be the taxable income of the business covered under the presumptive taxation scheme. Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of section, be deemed to have been already given full effect to and no further deduction under those sections shall be allowed. While computing income as per the provisions of section 44AD, separate deduction on account of depreciation is not available. However, the written down value of any asset used in such business will be calculated as if depreciation as per section 32 is claimed and has been actually allowed.