1(1) Notwithstanding anything contained in sections 28 to 43C, in the case of an assessee, being a resident in India, who is engaged in a profession referred to in sub-section (1) of section 44AAand whose total gross receipts do not exceed fifty lakh rupees in a previous year, a sum equal to fifty per cent. of the total gross receipts of the assessee in the previous year on account of such profession or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the assessee, shall be deemed to be the profits and gains of such profession chargeable to tax under the head Profits and gains of business or profession.
(2) Any deduction allowable under the provisions of sections 30 to 38shall, for the purposes of sub-section (1), be deemed to have been already given full effect to and no further deduction under those sections shall be allowed.
(3) The written down value of any asset used for the purposes of profession shall be deemed to have been calculated as if the assessee had claimed and had been actually allowed the deduction in respect of the depreciation for each of the relevant assessment years.
(4) Notwithstanding anything contained in the foregoing provisions of this
section, an assessee who claims that his profits and gains from the profession
are lower than the profits and gains specified in sub-section (1) and whose
total income exceeds the maximum amount which is not chargeable to income-tax,
shall be required to keep and maintain such books of account and other documents
as required under sub-section (1) of section 44AA and get them audited and
furnish a report of such audit as required under section 44AB.
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1. Ins. by s. 27, ibid. (w.e.f. 1-4-2017).
Section 44AA Maintenance of accounts by certain persons carrying on profession or business
Section 44AB Audit of accounts of certain persons carrying on business or profession
Section 44AD Special provision for computing profits and gains of business on presumptive basis
Section 44ADA Special provision for computing profits and gains of profession on presumptive basis
Section 44AF Special provisions for computing profits and gains of retail business
Section 44C Deduction of head office expenditure in the case of non-residents