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Presumptive Taxation Scheme – All You Need To Know
Presumptive Taxation Scheme or PTS is a scheme wherein there is no requirement to maintain books of accounts. Further, in order to avail this scheme, the taxpayer must have a turnover below the prescribed limit. In simple words, the PTS is for small taxpayers who do not require to maintain books of account.
In addition to the above, the Income Tax Act, 1961 mandates that every person engaging in business or profession has to maintain regular books of account and get these books of accounts audited. However, in order to give relief to small taxpayers, the Act provides for provisions of presumptive taxation scheme under Section 44AD, Section 44ADA and Section 44AE.
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