Freelancers, doctors, engineers, and other professionals who opt for a presumptive taxation scheme need to know that under this scheme, a taxpayer is permitted to declare income at a prescribed percentage or amount, instead of computing taxable profits on the basis of detailed books of accounts.
One of the primary reasons behind the introduction of the presumptive taxation scheme is to eliminate the hassle of business documentation, tax audits, and other processes associated with a business. All you need to do is opt for a presumptive taxation scheme and pay the specified amount of tax. However, if you are reporting less income than the specified percentage, then a tax audit is needed.
