I have read a lot of benefits when an eligible person adopts the 'Presumptive Income tax scheme' but everything has two sides so If I am assuming that I am eligible but what are the things why I should not adopt the 'Presumptive Income tax scheme' or why people don't adopt even if they are eligible to adopt.
example : a person has to only pay 6% of turnover on goods and if services then 50% of total gross profit will be considered taxable income.
But if someone has not adopted and has taken deduction 10A/10AA/10B/10BA or under section 80HH to 80RRB then that would reduce the tax even below 6% but then what about Alternate Minimum Tax rule (if not earn from SEZ unit) which will override the benefit of adopting either 'Presumptive scheme' or 'not adopting presumptive but availing deductions'
CAclubindia
