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Presumptive income under 2025 ACT

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This query is : Resolved

Naveen Kumar Jain (Querist)

16 July 2026 can set off of losses under other heads of income against business income arrived at using presumptive income scheme is not allowed under new Act? Is rebate under section 156 of 2025 Act will not apply to tax on income declared under presumptive scheme, just like capital gains are excluded?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 July 2026 1. Correct. , you are no longer allowed to set off any losses under other heads of income against presumptive business income. Section 58(4) of the 2025 Act imposes a strict blanket ban on claiming any loss, allowance, or deduction against income declared under presumptive taxation provisions.
2. The practical reading from current commentary is that presumptive income itself is not excluded just because it is presumptive; the issue is whether, after all allowed adjustments, your total taxable income still qualifies for the rebate threshold.

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