TO ease the tax burden on small taxpayers this taxation scheme was introduced by income tax law. In this scheme asseessee presume his/her income so this also called presumptive income scheme.

Who is eligible for this scheme?

• All Resident Individuals ,HUFs and Partnership Firms Other  Than Limited Liability Partnership (LLP) are eligible to opt for this scheme.

What are the benefit of this scheme?

You don’t have to maintain Accounting Records or Books of Accounts.

1. You don’t have to get your books of accounts audited.
2. To get benefit of this scheme you need to declare minimum 8% net profit of your business gross turnover (6% in case of digital receipts) or higher.

For Example your business gross turnover is 1 crore than show net profit of Rs.8 lacs or Rs.6 lacs , as applicable.

• Simpler ITR-4 form will be applicable which is simplier than regular ITR-3 form.

Any restriction to avail this scheme ?

1. Any assessee whose business turnover is more than 2crore is not eligible to opt for this scheme up to 2crore of turnover assessee can take benefit of this scheme.
2. If you opt for this scheme than you need to declare your net profit as per scheme i.e.8% or 6% for at least 5 years in continuation.