In case of a person adopting the provisions of
section 44AD, income will be computed on presumptive basis,
i.e., @ 8% of the turnover or gross receipts of the eligible business for the year.
Income shall be calculated at rate of 6% in respect of total turnover or gross receipts which is received by an account payee cheque or draft or use of electronic clearing system.
In other words, in case of a person adopting the provisions of
section 44AD, income will not be computed in normal manner as discussed in previous FAQ (i.e., Turnover
less Expense) but will be computed @ 8%/6% of the turnover.
Income at higher rate,
i.e., higher than 8% can be declared if the actual income is higher than 8%.