Deemed profit to be reduced from 8% to 6% u/s 44 AD

Tax incentive for cash less transaction: Deemed profit to be reduced from 8% to 6% u/s 44 AD:

New Delhi, 19th December, 2016.
Press Release

Measures for Promoting Digital Payments & Creation of Less-Cash Economy

Under the existing provisions of section 44AD of the Income-tax Act, 1961 (the Act), in case of certain assesses (i.e. an individual, HUF or a partnership firm other than LLP) carrying on any business (other than transportation, agency, brokerage and commission) and having a turnover of Rupees Two Crore or less, the profit is deemed to be 8% of the total turnover.

In order to achieve the Government's mission of moving towards a less cash economy and to incentivise small traders / businesses to proactively accept payments by digital means, it has been decided to reduce the existing rate of deemed profit of 8% under section 44AD of the Act to 6% in respect of the amount of total turnover or gross receipts received through banking channel / digital means for the financial year 2016-17. However, the existing rate of deemed profit of 8% referred to in section 44AD of the Act, shall continue to apply in respect of total turnover or gross receipts received in cash.

Legislative amendment in this regard shall be carried out through the Finance Bill, 2017.

(Meenakshi J. Goswami)
Commissioner of Income Tax
(Media and Technical Policy)
Official Spokesperson, CBDT.

DUE DATE CALENDAR FOR APRIL

DUE DATE CALENDAR FOR APRIL

S.No	Event Date	Act	Applicable Form	Obligation
1	7-Apr-16	Income Tax	Form No.27C (TCS)	Submission of Forms received in Mar to IT Commissioner
2	7-Apr-16	Income Tax	Challan No.ITNS-281, Form 26QB (Purchase of property)	Payment of TDS u/s 194IA deducted on purchase of property/TCS collected in Mar. (other TDS by 30th Apr)
3	10-Apr-16	Excise	ER-1	Excise Return ER-1 for Non SSI assessees for Mar-16
4	10-Apr-16	Excise	ER-2	Excise Return ER-2 for EOUs for Mar-16
5	10-Apr-16	Excise	ER-3	Submission of Excise Return ER-3 by SSI units for Mar-16 quarter
6	10-Apr-16	Excise	ER-6	Excise Return ER-6 by units paying duty > 1 crore (CENVAT + PLA) for Mar-16
7	12-Apr-16	D-VAT	BE - 2	Advance information for 2nd fortnight of APR-16 of functions with booking cost > Rs 1 lakh in Banquet Halls,hotels etc.
8	15-Apr-16	D-VAT	DVAT-20	Payment of DVAT TDS for Mar-16
9	15-Apr-16	Providend Fund	Electronic Challan cum Return (ECR)	E-Payment of PF for Mar-16 (NO Grace of 5 days)
10	21-Apr-16	ESI	ESI Challan	Payment of ESI of Mar-16
11	21-Apr-16	D-VAT	DVAT-20 & Central Form	E-Payment of DVAT & CST for the month ended Mar-16
12	22-Apr-16	Income Tax	Form 16B	Issue of certificate in case of payment/credit made in Mar-16 for purchase of property u/s 194IA.
13	22-Apr-16	D-VAT	DVAT- 43	Issue of certificate for deduction made in Mar-16 in DVAT-43
14	25-Apr-16	D-VAT	Form 16 and CST 1	E- Return of DVAT for the quarter ended Mar-16
15	25-Apr-16	Service Tax	ST - 3	Service Tax Return for the half year ended Mar-16
16	27-Apr-16	D-VAT	BE-2	Advance information for 1st fortnight of May-16 of functions with booking cost > Rs 1 lakh in Banquet Halls,hotels etc.
17	28-Apr-16	D-VAT	DVAT -56	Filing of DVAT Return Verification Form for quarter ended Mar-16 where return not signed with digital signature.
18	28-Apr-16	D-VAT	DVAT-48	Return of DVAT TDS for quarter ending Mar-16
19	28-Apr-16	D-VAT	Bank-1	Return by scheduled bank branches in Delhi engaged in sale of silver, gold, repossessed vehicles for quarter ending Mar-16.
20	30-Apr-16	Income Tax	Challan No.ITNS-281	Deposit of TDS deducted during Mar-16 (other than u/s 194IA in case of purchase of property)
21	30-Apr-16	Excise	ER-5	Excise Return ER-5 for FY 2014-15 by units paying duty > 1 crore (CENVAT + PLA)
22	30-Apr-16	Excise	ER-7	Excise Return ER-7 for FY 2014-15 by other excise units.
23	30-Apr-16	Maharashtra Profession Tax	MTR-6/ Form IIIB	Payment of Monthly Return of Maharashtra PT (Annual Liability 50000 or more)
24	30-Apr-16	Income Tax	Form 61	E-filing of information of declarations in Form 60 received upto 31st March-2016
25	30-Apr-16	D-VAT	DVAT-01	Filing of option to avail Composition Scheme in DVAT 01
26	30-Apr-16	D-VAT	DVAT-03	Filing of Withdrawal from Composition Scheme in DVAT 03
27	30-Apr-16	Luxury Tax		Payment of Luxury Tax, Delhi for Quarter ended March 2016
28	30-Apr-16	Luxury Tax	Form-8	Return of Luxury Tax, Delhi for Quarter ended March 2016