Presumptive Tax: Simplify Your Business Taxes
Qualified for Section 44AD or 44ADA? Stop worrying about complex books of accounts and mandatory audits. File your ITR-4 the easy way with EasyBiz360.
Why Choose Presumptive Taxation?
No Complex Accounting
Under 44AD/44ADA, you don’t need to maintain detailed books of accounts or get your financial statements audited.
Lower Tax Liability
Pay tax on a deemed percentage of your gross receipts (8% or 6% for business; 50% for professionals) instead of actual net profit.
Simplified Compliance
Filing through ITR-4 is significantly faster and more straightforward than standard business tax filing.
Understanding the Eligibility
The Presumptive Taxation Scheme is designed to provide relief to small taxpayers. Eligibility depends on your business nature:
- Section 44AD (Small Business): Applicable for resident individuals, HUFs, and partnership firms (excluding LLPs) with a turnover up to ₹2 Crores (or ₹3 Crores if cash receipts are ≤ 5%).
- Section 44ADA (Professionals): Applicable for specified professions (Doctors, Engineers, Lawyers, IT Consultants, etc.) with gross receipts up to ₹50 Lakhs (or ₹75 Lakhs if cash receipts are ≤ 5%).
Frequently Asked Questions
What if my actual profit is lower than the presumptive rate?
You can declare lower income, but you must maintain books of accounts and get your books audited by a Chartered Accountant as per the Income Tax Act.
Can I switch back and forth from this scheme?
Yes, but there are rules. If you opt out of the presumptive scheme, you may be ineligible to opt back into it for 5 consecutive assessment years.
Does EasyBiz360 help calculate my eligibility?
Absolutely. Our tax experts analyze your gross receipts and business type to determine if this scheme is your most tax-efficient path.
Check Your Eligibility Today
Provide your business or profession details below. We will calculate your tax liability and guide you on the best filing route.