The recent budget in 2016, has liberalised the presumptive taxation scheme by extending the turnover limit of small business firms to 2 Crore from 1 Crore. Also, professionals who were kept out of the scheme were included in the recent budget, limiting them with receipts of less than Rs. 50 lacs. However, this scheme is still not applicable to income from commission or brokerage, agency business, business of ply, hiring or leasing goods carriage.
A new provision is also brought in by the government into the scheme as one should file their returns under the presumptive scheme for at least 5 years in continuation, else shall lose tax benefits under this scheme.
Small taxpayers can file Income tax return under the scheme in two taxation schemes
Apart from the above, under 44AD, the recent budget has find provisions to include professionals to get the benefit of the scheme and is modified as section 44ADA.
A person resident in India engaged in the following professions can take advantage of presumptive taxation scheme of section 44ADA:-
3) Engineering or architectural
5) Technical consultancy
6) Interior decoration
7) Any other profession as notified by CBDT
As per the scheme, the total income or the business income computed in normal provisions are as follows:
Click here for Company return filings