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Legislative history of presumptive taxation

Section 44AD is a part of the Presumptive Scheme of Taxation which reads as “Special Provisions for computing profits and gains of business on presumptive basis”.
 
Its history
 
i. Such presumptive taxation u/s 44AD and 44AE was introduced by Finance Act 1994 w.e.f. A.Y. 1994-95. Under that regime, section 44AD was applicable to assessees engaged in the business of civil construction or supply of labour for civil construction. Whereas Section 44AE is applicable to assessee’s engaged in the business of plying, hiring or leasing of goods carriages where the assessee does not own more than 10 goods carriages at any time during the previous year.
 
ii. Yet another section 44AF was introduced by Finance Act 1997 w.e.f. A.Y. 1998-99 which was applicable to assessee’s engaged in retail trade of goods and merchandise.
 
iii. Now, by virtue of Finance Act (No. 2) of 2009, and w.e.f. A.Y. 2011-12, both Section 44AD and Section 44AF have been substituted by New Section 44AD, which is considered as a paradigm shift in the entire scheme of presumptive taxation.
 
iv. Further, the monetary limits have been amended by Finance Act 2010 and 2012. Also, a subsection no. 6 has been inserted by Finance Act 2012, w.r.e.f. A.Y. 2011-12 to exclude specified categories of assessees.
 
Well, a bare look at section 44AD of the Act, gives an impression that it is a step of Finance Ministry towards simplification of Tax Structure and Compliance applicable to Small Businessmen. Also the Section appears to be lucid in interpretation and application, but it is not so easy as it appears to be.