« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  Simplify capital gains tax regime... Core score: Bond St may be swept clean of TDS... » Presumptive tax net may expand January, 28th 2008 Taxi and bus fleet owners and contractors providing raw materials, electrical work and furniture in civil construction are likely to come under the presumptive income tax net from 2008-09.   An announcement in this regard is likely in the coming Budget.   Presumptive tax is a procedure for computing profits of contractors that supply labour for civil construction or are in the business of plying, hiring and leasing transport for goods.   A proposal is being considered to widen and deepen presumptive taxation to cover more activities under section 44AD and 44AE of the Income Tax Act, a finance ministry source said.   Section 44AE, for instance, covers goods carriages up to ten vehicles but excludes passenger vehicles. This provides scope for tax evasion since a large number of taxi and bus fleet operators provide transport services to hotels, tourists, government departments and corporations.   The voluntary tax compliance level is poor in this segment, an official source said.   Under this section, a heavy goods vehicle is presumed to be making a profit of at least Rs 3,500 and other goods carriages Rs 3,150 per month and are taxed accordingly.   Similarly, 44AD covers only contractors engaged in civil construction or supply of labour for civil construction, whose annual income is up to Rs 40 lakh.   Under the section, at least 8 per cent of the contractors gross receipts are considered as profit for taxation.   Officials said there is a need to widen its scope to include raw material suppliers for construction, sub-contractors providing electrical work, furniture, interior designing and office stationery.   Tax assessors have found that a large number of such assessees claim refunds for whatever they might have paid in taxes. Since there is no provision for mandatory audit of such assessees, they tend to show lower income.   Only 1 to 2 per cent of such assessees, whose returns are scrutinised, pay taxes properly, officials said. If they are included under presumptive taxation, income tax officers will be able to raise tax demands on such assessees.   Tax deducted at source may also be made mandatory for assesses who are to be brought under presumptive taxation.