In order to make tax filing simpler for small businessmen and professionals, the presumptive taxation scheme was introduced. Under this scheme, you are not required to maintain books of accounts. Instead, your income is calculated on a presumptive basis, provided your turnover is below a stipulated limit. Here are the details.
What is the presumptive taxation scheme?
As per the Income-tax Act, 1961, businessmen and professionals must maintain regular books of accounts. They must also get their accounts audited and file income-tax returns (ITRs). However, in order to give relief to small taxpayers, the presumptive taxation scheme (PTS) was put together.
Also see: The Moneycontrol Tax-Filing Guide