Income Tax Act, 2025
Section 5: Ins. by Act 11 of 1999, s. 7 (w.e.f. 11997).
5. Ins. by Act 11 of 1999, s. 7 (w.e.f. 11997).
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1[(7) 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-sections (1) and (2), 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.]
Explanation.—For the purposes of this section,—
2[(a) the expressions “goods carriage”, “gross vehicle weight” and “unladen weight” shall have
the respective meanings assigned to them in section 2 of the Motor Vehicles Act, 1988;
(aa) the expression “heavy goods vehicle” means any goods carriage, the gross vehicle weight of
which exceeds 12000 kilograms;’]
(b) anassessee, who is in possession of a goods carriage, whether taken on hire purchase or on
instalments and for which the whole or part of the amount payable is still due, shall be deemed to be
the owner of such goods carriage.]
3[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.]
4[(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.]
5[(6) Nothing contained in this section shall apply to any assessment year beginning on or after the 1st
day of April, 2011.]
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-sections
and
of
section 44AA and gets his accounts audited and furnishes a report of such audit as required under
section 44AB.]
Explanation.—For the purposes of this section,—
2[
the expressions “goods carriage”, “gross vehicle weight” and “unladen weight” shall have
the respective meanings assigned to them in section 2 of the Motor Vehicles Act, 1988;
the expression “heavy goods vehicle” means any goods carriage, the gross vehicle weight of
which exceeds 12000 kilograms;’]
anassessee, who is in possession of a goods carriage, whether taken on hire purchase or on
instalments and for which the whole or part of the amount payable is still due, shall be deemed to be
the owner of such goods carriage.]
3[44AF. Special provisions for computing profits and gains of retail business.—
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.
Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of
sub-section
subject to the conditions and limits specified in
clause
of section 40.
The written down value of any asset used for the purpose of the business referred to in
sub-section
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.
The provisions of sections 44AA and 44AB shall not apply in so far as they relate to the business
referred to in sub-section
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.]
4[
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
of section 44AA
and gets his accounts audited and furnishes a report of such audit as required under section 44AB.]
5[
Nothing contained in this section shall apply to any assessment year beginning on or after the 1st
day of April, 2011.]