How to file ITR under presumptive taxation scheme

Often small businessmen or professionals are unable to maintain books of accounts or financial records or can’t afford to hire accountants to do so, which can make the task of filing income tax returns difficult for them and can even lead to non-disclosure of income and lower tax compliance. “Net income is estimated to be 8% or 6% of gross turnover or ₹ 7,500 per month for each vehicle where the tax payer plies, leases or hires trucks or 50% of the total gross receipts for the year in case of professionals,” said Surana. For instance, if a businessman opts for PTS and declares the total turnover of the business at ₹ 1.5 crore in a financial year, business income chargeable to tax so calculated would be ₹ 12 lakh. “As per GST regulations, if a professional or businessman had a turnover of less than ₹ 20 lakh during last fiscal year, then he is not required to obtain the GST registration and he can still opt for the presumptive scheme,” said Surana. Also, “if the assessee has capital gains along with business income then ITR-4 cannot be filed; in that case, ITR-3 has to be filed,” said Surana.