Presumptive Taxation is a comprehensive, section-wise treatise covering the entire framework of presumptive taxation as codified under the Income-tax Act 2025, read with the Income-tax Rules 2026, and as amended by the Finance Act 2026.
The book provides a comparative treatment of the erstwhile presumptive taxation provisions under the Income-tax Act 1961 and the unified framework under the Income-tax Act 2025, covering Section 58 for residents, Section 61 for non-residents, and Sections 225 to 235 for the Tonnage Tax Scheme.
Present Publication: 2nd Edition | 2026, amended by the Finance Act 2026
Author: CA. Srinivasan Anand G.
Key Features
- Complete ITA 2025 Framework: Full coverage of every presumptive taxation scheme under the Income-tax Act 2025 for residents and non-residents, together with the Tonnage Tax Scheme.
- Chapter-by-Chapter Comparative Analysis: Each chapter identifies textual and substantive changes from the corresponding provisions of the Income-tax Act 1961.
- Section 58 Table De-Constructed: Detailed analysis of specified businesses and professions, eligible assessees, turnover/gross-receipts thresholds, and applicable computation rates.
- Section 61 Table De-Constructed: Parallel treatment of the six non-resident business activities with rate and presumptive-characterisation analysis.
- New Bar on Loss Set-Off: Detailed treatment of restrictions on set-off of losses against presumptive income under Sections 58(4) and 61(4).
- Expanded 5-Year Lock-In and Cooling-Off: Analysis of the Section 58(7) regime and its implications for opting out of presumptive taxation.
- Rule 48 and CBDC Inclusion: Treatment of the prescribed electronic modes qualifying for the lower presumptive rate under the Income-tax Rules 2026.
- Redefined 'Commission or Brokerage': Dedicated analysis of the statutory definition under the Income-tax Act 2025.
- Section 62 and Section 63 Interplay: Mapping of book-keeping thresholds and tax-audit triggers under the new framework.
- 80+ FAQs and Case Studies: Division 5 contains 81 FAQs and worked case studies covering practical scenarios across different assessee and transaction types.
- Diamond Trade Lower Rate: Detailed discussion of the presumptive rate range applicable to diamond manufacturers and traders.
- New 'Tax Year' Concept: Explanation of the transition from the Previous Year/Assessment Year framework to the unified Tax Year concept.
- Scope of CA Profession: Detailed treatment of gross receipts of Chartered Accountants and related professional activities.
- Medical Profession Depth: Treatment of salaried and independent medical practitioners, nursing homes, and related scenarios.
- Tonnage Tax Scheme – Full Treatment: Comprehensive coverage of qualifying companies and ships, tonnage income, core and incidental activities, reserve requirements, training requirements, charter-in limits, amalgamation, demerger, and tax-avoidance provisions.
- Judicial Support: Extensive reference to Supreme Court, High Court, and ITAT decisions relevant to presumptive taxation.
- Ministry of Finance Clarifications: Reproduction and analysis of relevant Select Committee clarifications, CBDT Circulars, and Finance Minister's Budget speech rationale.
- Statutory Appendices: Four appendices containing relevant provisions of the Income-tax Act 2025 and 1961 and the Income-tax Rules 2026 and 1962.
Coverage of the Book
- Conceptual Foundation: Concept, purpose, jurisprudential basis, regular vs. presumptive computation, rebuttable and irrebuttable presumptions, and the ITA 2025 applicability matrix.
- Resident Presumptive Taxation (Section 58): Covers business and profession definitions, eligible and ineligible businesses, specified professions, eligible assessees, and the three resident presumptive schemes.
- Compliance Consequences Under Section 58: Covers deductions, option mechanics, lower-than-presumptive declarations, lock-in provisions, tax-audit triggers, book-keeping requirements, and opting out.
- Non-Resident Presumptive Taxation (Section 61): Covers shipping, cruise ship operations, aircraft operations, turnkey power projects, mineral oil exploration, and electronic-goods manufacturing services/technology.
- Tonnage Tax Scheme (Sections 225–235): Covers qualifying Indian shipping companies, qualifying ships, tonnage income slabs, deemed tonnage, core and incidental activities, MAT treatment, depreciation, losses, opting and renewal, reserve accounts, training requirements, charter-in limits, and tax-avoidance provisions.
- 81 FAQs and Case Studies: Covers practical issues involving real estate developers, partnership firms, nursing homes, coaching classes, stamp vendors, lottery agents, airline agents, tanker and JCB operators, insurance agents, CAs, doctors, goods carriage owners, tax audits, unexplained cash deposits, bogus purchases, and ITR-4 disclosures.
Book Structure
- Division 1 – Concept and Purpose of Presumptive Taxation: Introduces the concept and complete ITA 2025 applicability matrix.
- Division 2 – Presumptive Taxation of Business or Profession of Resident Individuals, HUFs and Firms: Covers definitions, eligible businesses and professions, assessees, and the three resident schemes.
- Division 3 – Presumptive Taxation of Certain Business Activities of Non-Residents: Covers the six non-resident presumptive schemes under Section 61.
- Division 4 – Tonnage Tax Scheme for Qualifying Indian Shipping Company: Covers the tonnage tax regime under Sections 225 to 235.
- Division 5 – FAQs and Case Studies on Presumptive Taxation: Contains 81 numbered FAQs and worked case studies.
- Appendices: Four appendices reproduce the relevant provisions and rules of the Income-tax Act 2025, Income-tax Act 1961, Income-tax Rules 2026, and Income-tax Rules 1962.
The book follows a consistent analytical template for each presumptive provision, making it useful for both first-time readers and experienced practitioners, with extensive cross-referencing between chapters and FAQs for practical application.
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