If you’re a small business owner or professional, the presumptive taxation scheme makes filing easier for you by allowing you to declare income at a fixed percentage of your turnover or gross receipts. It removes the need for detailed bookkeeping and audits. 


If you're unsure about the presumptive scheme, you can check the Presumptive Taxation Scheme for more details.


Steps to report business income:

  1. Go to File > Business & Profession > Add Business
  2. Select the type of business
  3. Choose the taxation scheme – Presumptive Taxation Scheme under section 44AD
  4. Provide your business details, including the nature of the business and address
  5. Enter your business details: Provide the business nature, address, and other required information
  6. Enter bank revenue: Report your gross revenue and presumptive income (6% of turnover or actual profit, whichever is higher)
  7. If applicable, enter cash revenue: Report your cash revenue and presumptive income (8% of turnover or actual profit, whichever is higher)
  8. After saving your details, proceed to Add Assets & Liabilities.


Steps to report profession income:

  1. Go to File > Business & Profession > Profession
  2. Click on Add Profession
  3. Choose the taxation scheme – Presumptive Taxation Scheme under section 44ADA
  4. Enter profession details: Provide the category of your profession and business address.
  5. Enter bank receipts: Report gross receipts and presumptive income (50% of gross receipts or actual profit, whichever is higher)
  6. If applicable, enter cash receipts: Report cash receipts and presumptive income (50% of receipts or actual profit, whichever is higher)
  7. Once saved, proceed to Add Assets & Liabilities


Steps to add Asset & Liabilities

  1. Click on the Assets & Liabilities
  2. Enter your assets: Include fixed assets, investments, current assets, and any other assets you have.
  3. Enter your liabilities: Include reserves, non-current liabilities, and current liabilities.
  4. Click Save once all details are entered

That's all it takes to report Presumptive Income! You can get an overview of everything you’ve added in the summary tab, including your taxable income, P&L statement, and balance sheet.


Need help with:

  • Add income from sole proprietorship business 
  • Change the taxation scheme of the business


Still need help? You can raise a ticket to get in touch with us