There are 3 types of Schemes for small business in which books of accounts are not required to be maintained

  • 44AD Scheme
  • 44ADA Scheme
  • 44AE Scheme

These schemes are applicable to Small Proprietorship and Partnership

These are not applicable to companies


Business Covered in 44AD

If my turnover is upto 2 crores

8% of Sales is Profit for Cash Transaction and 6% for Bank Transactions

 

It covers all types of business,

except

  • agency business
  • professionals

Learn more here


Business Covered in 44ADA

If my turnover upto 50 lacs

50% of Sales is Profit for both Cash Transaction and Bank Transactions

It covers all types of professional like Doctor, CA, Advocates etc

Learn more here


Business Covered in 44AE

If i have upto 10 trucks,

then 7500 per truck per month is PGBP income for small trucks

and

1000 Per tonne per month for large trucks

It is applicable only to small goods transport who has not more 10 Trucks anytime during the year.

Learn more here

  1. Practical Income Tax
  2. Income Tax for Small Business

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.