Income-tax Act, 2025

Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents - Section 58

Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents.

58. (1) The provisions of sections 26 to 54, to the extent contrary to this section, shall not apply to the manner of computation of profits and gains of the specified business or profession in sub-section (2).

(2) The profits and gains of any specified business or profession as mentioned in column B of the Table below, carried on by an assessee specified in column C of the said Table, having total turnover or gross receipts of business or profession during the tax year specified in column D and computed in the manner specified in column E thereof, shall be deemed to be the profits and gains of such business or profession chargeable to tax under the head "Profits and gains of business or profession".

TABLE

Sl. No.

Specified business or profession

Assessee

Total turnover or, as the case may be, gross receipts of business or profession during tax year

Manner of computation

A

B

C

D

E

1.

Any business other than the business specified against serial number 2.

Eligible assessee.

(a) Does not exceed two crore rupees; or

(b) does not exceed three crore rupees, where the amount or aggregate of amounts received, in cash, does not exceed 5% of the total turnover or gross receipts.

(A) The aggregate of

(i) 6% of total turnover or gross receipts which is received by specified banking or online mode during the tax year or before the due date specified in section 263(1)in respect of that tax year;

(ii) 8% of total turnover or gross receipts as reduced by the turnover or gross receipts covered in (i); or

(B) profit claimed to have been actually earned,

whichever is higher.

2.

Business of plying, hiring or leasing goods carriage.

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