Zero Tax on Business Turnover up to ₹2 Crore – For AY 2026–27
Great news for small business owners! For the Assessment Year 2026–27, you can legally pay zero income tax on business turnover up to ₹2 crore, thanks to the Presumptive Taxation Scheme (Section 44AD) — with minimal paperwork and hassle. 🔍 What Is Section 44AD? Section 44AD of the Income Tax Act allows small business owners to declare income on a presumptive basis, which means: You don’t need to maintain detailed books of accounts. No audit is required. You report income as a fixed percentage of your turnover. ✅ Who Can Opt for Section 44AD in AY 2026–27? To be eligible, you must: Be an Individual, HUF, or Partnership Firm (not an LLP) Be a Resident of India Run an eligible business such as: Trading Retail shops Small-scale manufacturing Have gross receipts or turnover up to ₹2 crore NOT be engaged in: Agency business Commission or brokerage services 💸 How Is Zero Tax Possible? Here’s how: You declare 8% of turnover as income(or 6% if receipts are digital — UPI, bank transfers, credit cards, etc.) If this presumptive income falls within the tax-free limits, you pay no tax. 📌 Example: Turnover: ₹2,00,00,000 (received digitally)Presumed Income (6%): ₹12,00,000 Under the new tax regime: Basic exemption limit = ₹4,00,000 Section 87A rebate = ₹60,000👉 Effective zero tax on income up to ₹12,00,000 🌟 Benefits of Section 44AD: ✅ No need to maintain books of accounts ✅ No audit under Section 44AB ✅ File ITR-4 (Sugam) quickly ✅ Saves time and compliance costs ✅ Best suited for shopkeepers, traders, freelancers, service providers ⚠️ Key Points to Remember: Turnover must not exceed ₹2 crore If you declare income less than 6% or 8%, audit becomes mandatory This applies for AY 2026–27 only if you opt for the new tax regime 🚀 File Smart with Ezymoneydeals At Ezymoneydeals, we make your ITR filing: 🔍 Auto-check eligibility for presumptive taxation 🧮 Calculate tax based on digital/cash turnover 📝 File ITR-4 easily and error-free 💬 Chat with experts if you need help 👉 Start Filing for AY 2026–27✅ Zero Tax✅ Full Compliance✅ Peace of Mind
Zero Tax on Business Turnover up to ₹2 Crore – For AY 2026–27 Read More »
