Professionals such as doctors, engineers, chartered accountants (CAs), and others who run their own businesses opt for the presumptive income tax scheme to simplify their tax structure so that they can allocate more time to their businesses. Recognising this, the Income Tax Department has significantly eased compliance requirements under the scheme by reducing or eliminating the need to maintain detailed books of accounts, undergo tax audits, and fulfil other procedural formalities.
However, under the presumptive taxation scheme, you need to pay a fixed percentage of your turnover as tax and then file the income tax return (ITR). If you are declaring a lower profit than the specified limit in the presumptive taxation scheme, then a tax audit can be required.
