What are the laws referring to the presumptive taxation scheme within the Revenue Tax Guidelines in India?


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Oi-Kuntala Sarkar

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As per the Revenue Tax (IT) regulation in India, there’s a provision for presumptive taxation. As per part 44AA of the Revenue Tax Act, 1961, an individual engaged in enterprise or occupation is required to take care of common books of account in sure circumstances. The revenue tax guideline states, “As a way to relieve the small taxpayers from this tedious activity, the Revenue Tax Act has formulated a presumptive taxation scheme beneath part 44AD, part 44ADA, part 44AE, part 44BB, and part 44BBB.”

Regulations relating to presumptive taxation scheme in Income Tax Rules?

An individual adopting a presumptive taxation scheme can declare revenue at a prescribed fee and, in flip, is free of the tedious activity of sustaining books of account.

For small taxpayers, the Revenue Tax Act of 1961 has ready the estimated taxation schemes talked about beneath, as talked about within the official IT portal.

Part 44AD states that, within the case of taxpayers, revenue is computed on presumptive foundation. [being a resident individual, resident Hindu undivided family, or resident partnership firm (not being a limited liability firm] Engaged in sure enterprise topic to sure situations.

Part 44ADA supplies that, for the assessee being resident in India and engaged within the occupation referred to in part 44AA(1), computation {of professional} revenue on presumptive foundation is topic to sure situations.

Part 44AE supplies that, within the case of taxpayers (a person, HUF, AOP, BOI, agency, firm, co-operative society, or another individual being a resident or a non-resident) the revenue shall be computed on presumptive foundation topic to sure situations, The enterprise of plying, leasing, or renting freight.

Part 44B supplies that, being a non-resident in India, taxation on delivery income acquired by an individual, topic to sure situations.

Part 44BB mentions that the computation of taxable revenue of a non-resident (could be an Indian citizen or a overseas nationwide) from actions related with the exploration of mineral oils is topic to sure situations.

Part 44BBA states that the computation of revenue in respect of overseas airways is topic to sure situations.

Additional, part 44BBB states that, the computation of income and beneficial properties of overseas firms engaged within the enterprise of civil building is topic to sure situations.



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