Computing profits and gains of business on presumptive basis: Clause 58 of the Income Tax Bill, 2025 vs. Section 44AD of the Income-tax Act, 1961

Presumptive taxation scheme differentiates rates by transaction mode and imposes a five-year lock-in to simplify compliance.

Clause 58 permits computation of presumptive income for eligible small businesses and professions with turnover-based eligibility, distinguishes presumptive rates by mode of receipt, allows actual profit to be claimed if higher, mandates books and audit where actual profits are lower and total income exceeds the basic exemption, and imposes a five-year lock-in for continued application of the scheme.