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š„šļø BJP announced No Tax On businesses and startups Upto 2 Crores turnover š°š®š³š ā¢ Presumptive Taxation ( Section 44AD ) For Small Businesses: Individuals, HUFs, and partnership firms (except LLPs) can opt. 1= Taxable Income Presumed: ā¢ 8% of turnover for cash transactions. ā¢ 6% of turnover for digital transactions. 2= Simplified Compliance ā¢ No need to maintain detailed books of accounts. ā¢ No need for tax audit if turnover ā¤ ā¹2 crore. ā¢ Reduces compliance burden for small businesses. 3= Latest Updates ā¢ Higher Turnover Limit: Increased from ā¹2 crores to ā¹3 crores if cash receipts ā¤ 5% of total turnover. ā¢ Encourages Digital Transactions: More businesses can now benefit if they use digital payments. 4= Tax Payment & Compliance ā¢ Advance Tax: Entire tax liability must be paid by March 15 of the financial year. ā¢ Fixed Presumed Profit: Even if actual profit is lower, tax is still calculated on 6-8% of turnover. ā¢ Cannot Claim Business Deductions: No deductions for rent, depreciation, salaries, etc. 5= Restrictions & Limitations ā¢ No Opting In & Out Frequently: Once opted out, cannot re-enter for 5 years. 6= Not Allowed For: ā¢ Commission agents, brokerage firms, and agency businesses. ā¢ Businesses engaged in hiring, leasing, or plying goods carriages. ā¢ No Loss Carry Forward: Business losses cannot be adjusted in future years. 7= Advantage for startup and businesses ā¢ Less paperwork & compliance burden for small businesses. ā¢ No tax audit required if turnover ā¤ ā¹2 crores ā¢ Lower tax rate (6%) for digital transactions ā¢ Encourages digital payments & transparency ā¢ High Growth opportunities and easy market entry ā¢ Competitive Advantage for competing with giants š®š³š° What's your take on this ?
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