Who is eligible for Presumptive Tax Scheme and how to file it

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Presumptive Tax scheme is meant for the small businessman and professionals who cannot afford to hire a professional accountant. On most occasions, incomplete filing can be seen as the under compliance of the taxation or even non-disclosure of the income. To make sure that the honest taxpayers do not have to bear the brunt, the presumptive ITR has minimal compliance requirements.

Presumptive Tax

Presumptive Tax

Who can Select Presumptive Taxation Scheme?

All eligible resident individuals, Hindu undivided families and resident partnership firms can opt for the taxation scheme. The professionals who can opt for the PTS scheme are :




Interior Designer

Technical consultant



Any other professional as notified by CBDT

There are certain rules and regulations in place related to who can opt for the PTS on few factors such as


Nature of the business

Profession for option PTS.

Take for instance, an individual who has the total receipt of less than Rs 50 lakhs annually and does not own more than 10 good carriages and is into the business of plying, hiring or leasing can go for the PTS.

Relevant Section44AD44ADA44AE
Maximum turnoverRs 2 CroreRs 50 lakhUp to 10 trucks
Profit or income to be declared8% of the turnover(6% of the digital income)50% of total receiptsRs 7,500 per truck

Who is not eligible?

  • Limited Liability partnership firms
  • Businesses that avail the benefit of SEZs or backward area
  • If the nature of the income is commission or brokerage

ITR to be selected

Those taxpayers who wish and are eligible to avail PTS under Sections 44AD, 44ADA or 44AE would need to select ITR 4. There has been a lot of changes made in the ITR 4 this year and some of the notable ones are:

  • Four financial of the business namely total debtors, total creditors, cash balance and total stock in trade
  • Details of secured/ unsecured loans, fixed assets, capital account and so on
  • GSTR number of the assessee and the turnover as per GST return filed by the assessee.

Structure of ITR 4

  • General Information
  • Gross total income from the five heads of income
  • Deduction and total taxable income
  • Tax computation and tax status
  • Verification & signatures on the return
  • Details of income from Business

Is GSTR number necessary?

Under the GST regulations, if a businessman or professional has a turnover below Rs 20 lakh during the last fiscal year, there is no need of GST registration and he is eligible for PST. The GSTR number should be left blank.

In case the taxpayer has capital gains along with the business income, then he should opt for ITR-3 rather than ITR 4 according to the tax experts.

Looking for tax filing help call @09902977233 or email @info@saidigitalsignature.com 


About Author

An MBA in finance, I like to cover the wide range of topics related to Taxation, SEBI, Finance and anything that is Public Helpful. The motive is always to make it simpler for the taxpayers understand the system better and take informed decisions.

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