Presumptive Taxation Schemes
Introduction
An assessee has two options to pay tax on business income. Under the first option, he can compute taxable income on the basis of books of account. The second option is Presumptive Tax Scheme wherein the income will be estimated at a prescribed percentage or amount on the basis of total turnover or gross receipts. Various Presumptive taxation schemes are available for resident and non-resident assessees.
1. Presumptive Scheme for Residents
(a) Presumptive Taxation Scheme for Businesses under Section58(2) [Table S. No. 1]
(b) Presumptive Taxation Scheme for Professions under Section 58(2) [Table S. No. 3]
(c) Presumptive Taxation Scheme for Goods Transport Agency under Section 58(2) [Table S. No. 2]
2. Presumptive Scheme for Non-Residents
(a) Presumptive Taxation Scheme for Goods Transport Agency under Section 58(2) [Table S. No. 2]
(b) Presumptive Taxation Scheme for Shipping Businesses under Section 61(2) [Table S. No. 1]
(c) Presumptive Taxation Scheme for Exploration Business under Section 61(2) [Table S. No. 5]
(d) Presumptive Taxation Scheme for Airline Cos. under Section 61(2) [Table S. No. 3]
(e) Presumptive Taxation Scheme for Civil Construction Cos. under Section 61(2) [Table S. No. 4]
(f) Presumptive Taxation Scheme for Cruise Shipping Businesses under Section 61(2) [Table S. No. 2]
(g) Presumptive Taxation Scheme for providing services or technology for setting up electronics manufacturing facilities in India under Section 61(2) [Table S. No. 6]
3. Overview
| Section | Eligible Assessee | Eligible Business | Presumptive Income | Consequences on opting out |
| 58(2) [Table S. No. 1] | Resident persons being: a) Individual b) HUF c) Partnership Firm (excluding LLP) |
Any business (other than commission and agency business) |
|
|
| Section 58(2) [Table S. No. 3] | Resident persons being: a) Individual b) Partnership Firm (Other than LLP) |
Specified Professions | 50% of gross receipts | Mandatory to maintain books of account and get them audited |
| Section 58(2) [Table S. No. 2] | Any assessee (resident or non-resident) | Plying, hiring or leasing of goods carriages |
|
Mandatory to maintain books of account and get them audited |
| Section 61(2) [Table S. No. 1] | Non-resident | Shipping business other than cruise shipping | 7.5% of receipts | - |
| Section 61(2) [Table S. No. 5] | Non-resident | Providing facilities or services for exploration of mineral oil | 10% of receipts | Mandatory to maintain books of account and get them audited |
| Section 61(2) [Table S. No. 3] | Non-resident | Operation of aircraft | 5% of receipts | - |
| Section 61(2) [Table S. No. 4] | Foreign Company | Civil construction in connection with turnkey power project | 10% of receipts | Mandatory to maintain books of account and get them audited |
| Section 61(2) [Table S. No. 2] | Non-resident | Business of operation of cruise ships | 20% of receipts | - |
| Section 61(2) [Table S. No. 6] | Non-resident | Providing services or technology for setting up electronics manufacturing facilities in India | 25% of receipts | - |
8% of gross turnover.
6% for the sum received through banking channels
Mandatory to maintain books of account and get them audited
Can’t opt again for next 5 years
Heavy goods carriage vehicle: Rs. 1,000 per ton
Other goods carriage vehicle: Rs. 7,500 per month or part of the month
This article is general information and not tax advice. Provisions change. Confirm your position with a qualified professional before acting.