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

Income of Balwant is as under: Nature of Receipt Amount (₹) Rate Presumptive Income (₹) 1. Cash Receipts 13,50,000 8% 1,08,000 2. Electronic mode Receipts 2,84,00,000 6% 17,04,000 Total Income as per 44AD 18,12,000 Note: Actually, the due date of filing of Income Tax Return for Mr. Balwant when he is paying tax as per section 44AD shall be 31st July, 2025 for the PY 2024-25 as he is not required to maintain books of accounts and no need of audit under section 44AB of the Income Tax Act. Therefore, receipts in prescribed electronic modes should be considered only till 31st July, 2025. It is assumed that the all receipt through prescribed mode is received latest by 31st July, 2025. Alternative Answer 2(iv) In case of a person opting the provisions of section 44AD, income is computed on presumptive basis at the rate of 8% of the turnover or gross receipts of the eligible business for the year. Further, in order to promote digital transactions and to encourage small unorganized business to accept digital payments, income shall be computed at the rate of 6% instead of 8% of the turnover/gross receipt which is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed during the previous year or before the due date of filing of return under section 139(1). Income of Balwant is as under: Nature of Receipt Amount (₹) Rate Presumptive Income (₹) 1. Cash Receipts 13,50,000 8% 1,08,000 2. Electronic mode Receipts [Since, not received within due date of filing of return of income i.e. 31st July, 2025] 2,84,00,000 8% 22,72,000 Total Income as per 44AD 23,80,000 Note: Actually, the due date of filing of Income Tax Return for Mr. Balwant when he is paying tax as per section 44AD shall be 31st July, 2025 for the PY 2024-25 as he is not required to maintain books of accounts and no need of audit under section 44AB of the Income Tax Act. Therefore, receipts in prescribed electronic modes should be considered only till 31st July, 2025. It is mentioned that the balance receipt is received through electronic prescribed mode by 31st Oct, 2025 and therefore rate will be applied @8% instead of 6%.