INTERVIEW QUESTIONS INCOME TAX PRESUMPTIVE TAXATION FOR BUSINESSES DETAILS

Question: A person who is carrying on any agency business and a person who is earning income in the nature of commission or brokerage cannot adopt the provisions of section 44AD.

(a) True (b) False

Answer: Correct answer : (a)
Justification of correct answer :
The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses:
. Business of plying, hiring or leasing of goods carriages referred to in section 44AE.
. A person who is carrying on any agency business. [As amended by Finance Act, 2016]
' A person who is earning income in the nature of commission or brokerage

Thus, the statement given in the question is true and hence, option (a) is the correct option.

Correct answer : (a)
Justification of correct answer :
The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses:
. Business of plying, hiring or leasing of goods carriages referred to in section 44AE.
. A person who is carrying on any agency business. [As amended by Finance Act, 2016]
' A person who is earning income in the nature of commission or brokerage

Thus, the statement given in the question is true and hence, option (a) is the correct option. Source: CoolInterview.com

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