Are You A Consultant? Budget Has Made Life Less Taxing; What Is Presumptive Tax Scheme

Are You A Consultant Budget Has Made Life Less Taxing What Is Presumptive Tax Scheme

Wider Ambit

The Presumptive Tax Scheme Allows Technical Consultants And Other Professionals Such As Doctors Lawyers Cas And Architects To Declare A Specific Percentage Of Their Gross Receipts As

Consultants Whose Gross Receipts Are Rs 75 Lakh Or Less In A Financial Year Can Opt For This Scheme The Earlier Limit Was Rs 50 Lakh However It Is Essential That Not More Than 5 Of Such Gross Receipts Is Earned Via Cash Nonbanking Channels

Please Keep In Mind That 50 Of The Gross Receipts Will Remain As Taxable Income However The Taxpayer Can Choose To Declare An Amount Higher Than This Quantum As Their Income

According To Abhishek Soni Ceo Of Tax2Win Eligible Taxpayers Can Choose The Presumptive Income Tax Scheme And Declare Their Income As Either 8 Of Gross Turnover Under 44Ad Or 6 In Case Of Digital Transactions Or 50 Of Total Sales As Income Under 44Ada

Tax Rebate The Income Tax Rate Under The Presumptive Income Scheme Is Charged At The Normal Slab Rate Mentioned Above In The Table Above For Sole Proprietorship Business And Professionals

Abhishek Soni Stated

Fees Received By A Consultant Are Taxed Under The Head Profits And Gains From Business Or Profession Image Source Getty Images