Income tax departments have simplified the taxation for small businesses and professionals by introducing specific Sections for them. Let us discuss in detail the sections applicable to small businesses other than professionals:
If you have a business other than professions specified under Section 44ADA & have gross receipts up to INR 2 Crores, then you can offer your income at 8% of total receipts.
From FY 2023-24 onwards, the limit of gross receipts has been increased from INR 2 Crores to INR 3 Crores, if the individual has received cash receipts only up to 5% of total receipts.
Receipts received through banking channels can be offered to income at the rate of 6%.
Mode of receipts | Income can be offered @ | ||
| Receipts received through Banking Channels | 6% | ||
| Receipts received through modes other than | Banking Channels | 8% |
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