The presumptive scheme is the tax law’s gift to small businesses and professionals: declare a prescribed percentage of turnover as profit, skip detailed books, file a simpler return.

How it works

Eligible businesses (44AD) and specified professionals (44ADA) below the notified turnover/receipt limits declare income at or above the prescribed presumptive rate. Digital receipts enjoy a concessional presumptive rate for businesses as per current rules.

When it is a clear win

  • Your actual margins are at or above the presumptive rate — you pay the same or less tax with far less compliance
  • Your operations are simple and you value time over paperwork

When to think twice

  • Actual profits below the presumptive rate: declaring lower income means maintaining books and possibly audit
  • The consistency rule: opting out after opting in can lock you out of the scheme for subsequent years as per current provisions
  • Loss years: presumptive filers cannot show business losses

We model both routes with your numbers before you choose — ITR filing · tax planning.