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