Businesses with turnover up to Rs 2 crores can opt for presumptive taxation scheme. Earlier this limit was Rs 1 crore(FY 2015-16). We’ll quickly list down the features of this scheme-
- Your turnover must be less than Rs 2 crores
- Your NET income shall be considered as 8% of your turnover (net income will be considered 6% in case of digital receipts)
- You don’t have to maintain accounting records
- You don’t have to pay advance tax (from FY 16-17, assessee opting for presumptive taxation has to pay 100% advance tax by 15th March of that particular financial year)
- You don’t have to get your accounting records audited
- You can file your tax return in ITR-4S.
Please follow the link given below to know in detail: