Comparison of Section 58 "Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....e 58 of the Income Tax Bill, 2025 (old version). Both establish presumptive taxation rules for certain resident taxpayers carrying on small businesses, goods-carriage operations and certain professions. The differences between the Bill (old) and the final Section are limited but material for compliance and computation. Affected parties include eligible individuals, HUFs and firms (excluding LLPs), small transport operators and specified professionals. Effective date or enactment date: Not stated in the document. Background & Scope Statutory hooks: references to sections 26 to 54 (computation rules generally), section 62 and section 63 (books, accounts and audit) and cross-references to Chapter VIII-C and Limited Liability Partnership Act,....

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....no.1) in the final Section. Any further legislative intent or policy background: Not stated in the document. Exceptions/Provisos Key carve-outs and conditions set out in the text: * Where taxpayer claims lower actual profit than presumptive amount and total income exceeds basic exemption limit, books must be maintained and accounts audited (sections 62 & 63) - both texts contain this obligation, though cross-references differ slightly in bracketed subsections in the Bill. * No loss, allowance or deduction under the Act is permitted against income computed under the presumptive clause (final Section sub-sec (4); Bill sub-sec (4) uses reference to sub-sec (1) - see differences below). * Serial no.2 (goods carriage): in the final Secti....

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....t tonnage and resulting sum: Not stated in the document. Interplay Both texts reference sections 62 and 63 (books and audit). The final Section expressly excludes applicability of sections 62 and 63 insofar as they relate to the goods-carriage business for monetary limit computations (sub-sec (10)). The Bill has similar references but bracketed cross-references differ (section 62(2) in Bill). Interaction with Chapter VIII-C and section 144 is controlled through conditions defining "eligible assessee" - the final Section uses section 144 and Bill uses section 141 - see differences below. Any further interactions with Rules/Notifications/Circulars: Not stated in the document. Differences Between the Two Texts and Practical Impact Topic ....

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....has not claimed any deduction u/s 144;" Practical impact: substantive difference depending on content of sections 141 vs 144 (which are not provided). This alters who qualifies as eligible assessee; taxpayers must verify which section was intended in final enactment. Cross-reference for deduction in goods carriage (salary/interest to partners) Bill references section 35(f). Final Section references section 35(e). Practical impact: differing cross-references change applicable conditions and limits for partner salary/interest deduction when computing income for firms in goods-carriage business; the precise effect depends on content of section 35(e)/(f). Application/exclusion of sections 62 and 63 for goods carriage Bill: does not h....

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....omputing monetary limits reduces the risk of triggering audit/book-keeping thresholds by aggregating such receipts - but requires careful reading to apply exclusions correctly. * Record-keeping: where an assessee claims actual profits lower than presumptive income and total income exceeds basic exemption, books and audit obligations apply - taxpayers should retain books and be prepared for audit if invoking that route. * Receipt by non-account-payee cheque or bank draft is treated as cash for the cash-receipt tests - practitioners should track payment modes and classify non-account-payee instruments accordingly. Key Takeaways * Both texts establish a presumptive taxation regime for small businesses, goods-carriage owners and certain ....