Introduction of Presumptive Taxation:
To reduce the burden of small business taxpayers from various tax compliances, Income Tax Act,1961 has introduced a Simplified Taxation System, widely known as “Presumptive Taxation”.
What is Presumptive Taxation?
?UnderPresumptive Taxation, the Income of the Assessee is computed on presumptive basis i.e. at prescribed percentage of the Gross Receipts and all the expenditure incurred by the Assessee related to business are presumed to be claimed.
Background:
Under “Pradhan Mantri Awas Yojana – Housing for All” mission for urban areas isbeing implemented with effect from 17.06.2015 to provide centralassistance to implementing agencies through States and UT’s for providing houses to all eligible families / beneficiaries. As a central sector scheme, the existing Credit Linked Subsidy Scheme (CLSS) component of the mission provides interest subsidy on home loans taken by eligible urban poor i.e. Economically Weaker Sections(EWS) /Lower Income Group(LIG) for acquisition
Objective:
The objective of this standard is to prescribe
Timely and reliable interim financial reporting improves the ability of investors, creditors, and others to understand an entity’s capacity to generate earnings and cash flows and its financial condition and liquidity.
The Ministry of Corporate Affairs (MCA), on 28 March 2018, notified Ind AS 115, Revenue from Contracts with Customers (which is based on IFRS 15, Revenue from Contracts with Customers) as part of the Companies (Indian Accounting Standards) Amendment Rules, 2018.
The new standard is effective for accounting periods beginning on or after 1 April 2018, thus aligning the Ind AS 115 applicability date with the IFRS applicability date i.e. 1 January 2018.
Ind AS 115 replaces existing revenue recognition standards Ind AS 11, Construction Contracts and Ind AS 18, Revenue and revised guidance note of the Institute of Chartered Accountants of India (ICAI) on Accounting for Real Estate Transactions for Ind AS entities issued in 2016.
Contributed by CA Manindar & Bhavani
