Artha Artha

Statutory Specification • Engine v1.0.0

Presumptive Tax Calculation Methodology

Detailed technical and legal specification governing Section 44AD, Section 44ADA, 5% cash safe-harbor verification, single March 15 advance tax schedule, and Rule 119A interest rounding mechanics.

1. Deterministic Execution Guarantee

Tax calculation on Artha is executed entirely through deterministic, compiled TypeScript code. AI or LLMs are never used for calculation.

2. 5% Cash Safe-Harbor Verification

Finance Act 2023 enacted enhanced limits (₹3 Crores for 44AD, ₹75 Lakhs for 44ADA) where cash receipts are ≤ 5.0% of total turnover.

3. Advance Tax & Rule 119A Mechanics

Under Section 211(1)(b), 100% advance tax is due by 15 March. Section 234C 1% interest and Section 234B 1% interest truncate principal base to lower multiples of ₹100 u/r 119A.

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