Income Tax 24 October 2026
Presumptive Tax Rules Ban Separate Business Expense Deductions
Under India's presumptive tax scheme, businesses cannot claim separate expense deductions; all costs are assumed within the set income percentage. This removes the need for detailed books or tax audits for eligible firms, easing compliance while restricting tax‑planning options.
Key Point: No separate business expense deductions under presumptive tax.
- All expenses are rolled into the prescribed income percentage.
- Eligible taxpayers are exempt from maintaining books of account and from tax audit requirements.
- The rule simplifies filing but limits ability to reduce taxable income through itemised claims.
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