(1) The provisions of sections 26 to 54, to the extent contrary to this section, shall not apply to the manner of computation of profits and gains of the specified business or profession in sub-section (2). (2) The profits and gains of any specified business or profession as mentioned in column B of the Table below, carried on by an assessee specified in column C of the said Table, having total turnover or gross receipts of business or profession during the tax year specified in column D and computed in the manner specified in column E thereof, shall be deemed to be the profits and gains of such business or profession chargeable to tax under the head “Profits and gains of business or profession”. Table Sl. No. Specified Assessee Total Manner of business or turnover computation profession or, as the case may be, gross receipts of business or profession during tax year A B C D E 1. Any business Eligible (a) Does (A) The aggregate of– other than the assessee. not exceed (i) 6% of total business two crore turnover or gross specified rupees; or receipts which is against serial (b) does received by specified number 2. not exceed banking or online mode three crore during the tax year or rupees, before the due date where the specified in section amount or 263(1) in respect of that aggregate of tax year; amounts (ii) 8% of total received, in turnover or gross cash, does receipts as reduced by not exceed the turnover or gross 5% of the receipts covered in (i); or total (B) profit claimed to turnover or have been actually gross earned, receipts. whichever is higher.
A B C D E 2. Business of An (A) The aggregate of plying, hiring assessee, income from goods or leasing who owns carriage:— goods not more (i) being a carriage. than ten heavy goods vehicle, goods calculated at the rate carriages at of ₹1000 per ton of any time gross vehicle weight or during the unladen weight, as the tax year. case may be, for each vehicle, for every month or part of a month during which such vehicle is owned by the assessee in the tax year; (ii) being a vehicle other than heavy goods vehicle, calculated at the rate of ₹7,500 for each goods carriage for every month or part of a month during which the vehicle is owned by the assessee in the tax year; or (B) profit claimed to have been actually earned, whichever is higher. 3. Specified Specified (a) Does not 50% of the gross profession as assessee. exceed fifty receipts or profit referred to in lakh rupees: or claimed to have been section 62(4). actually earned, (b) does not exceed whichever is higher. seventy-five lakh rupees, where the amount or aggregate of amounts
CH. IV D.- PROFITS AND GAINS OF BUSINESS OR PROFESSION [Sec 26-66] received in cash does not exceed 5% of the gross receipts. (3) Any assessee mentioned in column C of the Table in sub-section (2), who claims that–– (a) the profits or gains actually earned from the specified business or profession are lower than the profits or gains computed in the manner mentioned in column E of the said Table; and (b) whose total income exceeds the maximum amount which is not chargeable to tax, shall be required to–– (i) keep and maintain such books of account and other documents as required under section 62; and (ii) get the accounts audited and furnish a report of such audit as required under section 63. (4) Any loss, allowance or deduction allowable under the provisions of this Act, shall not be allowed against the income computed in the manner specified in sub-section (2). (5) For the purposes of sub-section (2) (Table: Sl. No. 2), where the assessee is a firm, the salary and interest paid to its partners shall be deducted from the income computed under sub-section (1) subject to the conditions and limits specified in section 35(e). (6) The written down value of any asset used for the purposes of specified business or profession shall be computed as if the assessee mentioned in column C of the Table in sub-section (2) had claimed and was actually allowed deduction in respect of depreciation thereon for each of the relevant tax years. (7) Where an eligible assessee declares profit for any tax year as per the provisions of sub-section (2) (Table: Sl. No. 1) and he declares profit for any of the five tax years succeeding such tax year in contravention of the provisions of sub- section (1), then he shall not be eligible to claim the benefit of the provisions of this section for five tax years subsequent to the tax year in which the profit has not been declared as per the provisions of the said sub-section. (8) Irrespective of anything contained in foregoing provision of this section, where provisions of sub-section (7) are applicable to an eligible assessee and his total income exceeds the maximum amount which is not chargeable to income-tax, he shall be required to keep and maintain such books of account and other documents as required under section 62 and get them audited and furnish a report of such audit as required under section 63.