Presumptive taxation scheme increased turnover limit from FY 23-24

Income tax important change applicable from FY 23-24

CBDT has notified ITR 1 and ITR 4 for the AY 2024-25 vide Notification No. 105/2023 dt. 22-12-23.

Benefit of Tunover

One major change came in the Finance Act, 2023 which is applicable from the FY 2023-24, is an increase in the turnover limit of presumptive taxation scheme u/s 44AD & 44ADA :

- from INR 2 crores to 3 crores (sec 44AD)

- from INR 50 lacs to 75 lacs (sec 44ADA)

👉 Common condition for the above increased limit is : cash reciepts should not exceed 5% of the total gross reciepts / turnover of such previous year.

>New notified ITR4 form has now incorporated the above change in the respective tables of Sec 44AD & Sec 44ADA.

> Now in new ITR 4 form, taxpayer also have to disclose all of his cash reciepts to claim the benefit of above increased turnover limits.

Notification download:

notification-105-2023.pdf

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