In order to alleviate the burdensome task of bookkeeping and the obligation of undergoing audits for small-scale taxpayers, the Income-tax Act has instituted the presumptive taxation scheme outlined in sections 44AD, 44ADA, and 44AE. This section provides comprehensive insights into the various provisions of the presumptive taxation scheme encapsulated within Section 44AD, Section 44ADA, and […]

This article deals with Charitable/Religious trust/institution which is not registered under Section 12AA/12AB of the Income Tax Act, 1961 (“the Act”). Also, it does not cover any trust/institution referred to in clause (23C) of section 10 of the Act. 1. Definition of Charitable/Religious Activity First, we have to ascertain whether the trust activity falls under […]

This article deals with deduction or allowance under Income Tax Act, 1961 (“ITA”) for Pre-operative Expenses/preliminary Expenses. 1. What are Pre-operative Expenses/preliminary Expenses? A business may incur many expenditures before it starts.  These costs can be called as Start-up costs which consists of preliminary expenses incurred in establishing a legal entity such as legal and […]