What is Section 44AD Scheme for Small Business

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Section 44AD Scheme for Small Business if Turnover of Business upto 2 Crores No Need to Do Accounting or Audit Direct 8% of Cash Sales is Profit (6% in case of Non Cash Sales) Example Total Sales 2000000 Profit 8% 160000 Tax 0 (No need to Maintain Books or Accounting) Can Person Show More than 8%? Yes Person can show More than 8% also Suppose he shows 30% Cash Sales 2000000 Profit 600000 Tax 32500 Rebate 0 Net Tax 32500 Can person Show Less than 8% No, this Scheme is not applicable For this Proper Accounting and Audit is Required Section 44AD is Min 8% for Cash and Min 6% for Non Cash Sales A person has Sales as Follows Cash Collected from Customer Customer Paid through Debit Card Total 1000000 4000000 5000000 Cash Bank Total Turnover 1000000 4000000 5000000 Profit % 8% 6% Profit 80000 240000 Profit 320000 Tax 8500 Rebate 8500 Net Tax 0 Cess 4% 0 Total Tax Incl Cess 0