Presumptive Taxation for Businesses

Section 44AD limit raised to ₹3 Cr for digital businesses (95%+ digital receipts). Presumptive income: 6% digital, 8% cash receipts.

Eligibility 2026:

• Resident individuals/HUF
• Business turnover < ₹3 Cr
• No company/LLP ownership

Key Benefits:

• ITR-4 auto-populated from bank statements
• No books of accounts required
• Single page tax return

New Features:

• Penalty-free regime switching (once/5 years)
• Advance tax instalment reduction to 8%
• Digital transaction proof auto-accepted

Calculation Example:

₹2.5 Cr digital receipts × 6% = ₹15L taxable income
Tax @20% new regime = ₹3L tax liability

Perfect for small traders, professionals, commission agents avoiding complex accounting. 75% of eligible businesses now use presumptive scheme per ITD data.