44AF. Special provisions for computing profits and gains of
retail business.- (1) Notwithstanding anything to
the contrary contained in sections 28 to 43C, in the case
of an assessee engaged in retail trade in any goods or merchandise,
a sum equal to five per cent of the total turnover in the
previous year on account of such business or, as the case
may be, a sum higher than the aforesaid sum as declared by
the assessee in his return of income shall be deemed to be
the profits and gains of such business chargeable to tax under
the head “Profits and gains of business or profession”
:
Provided that nothing contained in this sub-section shall
apply in respect of an assessee whose total turnover exceeds
an amount of forty lakh rupees in the previous year.
(2) Any deduction allowable under the provisions of sections
30 to 38 shall, 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 :
Provided that where the assessee is a firm, the salary and
interest paid to its partners shall be deducted from the income
computed under sub-section (1) subject to the conditions and
limits specified in clause (b) of section 40.
(3) The written down value of any asset used for the purpose
of the business referred to in sub-section (1) 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) The provisions of sections 44AA and 44AB shall not apply
in so far as they relate to the business referred to in sub-section
(1) and in computing the monetary limits under those sections,
the total turnover or, as the case may be, the income from
the said business shall be excluded.
(5) Notwithstanding anything contained in the foregoing
provisions of this section, an assessee may claim lower profits
and gains than the profits and gains specified in sub-section
(1), if he keeps and maintains such books of account and other
documents as required under sub-section (2) of section 44AA
and gets his accounts audited and furnishes a report of such
audit as required under section 44AB.
(6) Nothing contained in this section shall apply to any assessment
year beginning on or after the 1st day of April, 2011.
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