Profit and Gain under presumptive basis vis-a-vis Section 115JB
As the number of zero tax companies and companies paying marginal tax had grown, the Minimum Alternate Tax Provision has been inserted in the Income Tax Act. It was felt that various concession given under the tax laws, big corporate groups become zero tax companies, to counter this, as the system of MAT Under Section 115JB was introduced.
In this article, I would like to share some of my views in respect of Presumptive Profit under the Head Business or Profession vis-à-vis section 115JB.
Applicable sections to calculate the Presumptive income under the head of business or profession are 44AD, 44AE, 44AF, 44B, 44BB, 44BBA and 44BBB.
According to all these above mentioned section, notwithstanding anything to the contrary contained in section 28 to 43C, In case an assessee engaged in those specified business as mentioned in those above sections , a sum equal to such percentage (as mentioned in the above section) of total turnover or gross receipt of assessee in the previous year on account of such business or as the case may be, a sum higher than aforesaid sum claimed to have been earned by the assessee shall be deemed to be the profit or gains of the business chargeable to tax under the head of “profit and gains of business or professions