Presumptive Income Entry in Saral Income Tax

In this post, we will see the process of Presumptive Income Entry of an individual in Saral Income Tax.

What is Presumptive Income?

The income received for the below-listed business;

  • The business of plying, hiring or leasing goods carriages referred to in sections 44AE.
  • Any agency business.
  • Income in the nature of commission or brokerage

is considered as Presumptive Income. Apart from the above-discussed businesses, a person carrying on profession as referred to in section 44AA(1) ​is not eligible for presumptive taxation scheme under section 44AD.

Who can opt for Presumptive Income?

Any person being an Individual, Hindu Undivided Family or Partnership Firm (not Limited Liability Partnership Firm) can opt for presumptive income under Income Tax.

A person adopting the presumptive taxation scheme can declare income at a prescribed rate and, in turn, is relieved from the tedious job of maintenance of books of account.

Presumptive Income in Saral Income Tax can be declared, when;

  • The assessee has opted for ITR-4 (For AY 2019-20)
  • business income whose total turnover or gross receipts does not exceeds Two Crore rupees

To begin with, select the individual and click on Business / Prof. option on the Tax Meter under Computation tab.

Presumptive Income Entry in Saral Income Tax - click on business/prof

On the right-hand side of the screen, the presumptive income entry screen will be displayed. Here, identify the type of business income applicable and click on “…” button against the respective type.

Presumptive Income Entry in Saral Income Tax - type of business

First, we will look into the entry of Presumptive Income from Business u/s 44AD. Click on “…” button against Business Turnover (44AD).

Presumptive Income Entry in Saral Income Tax - business u/s 44AD

Select the number of business maintained i.e., the number of business owned by the individual. Then, select the type of transaction carried in the business i.e., Cash or Digital (online / card / UPI, etc.). In case of both type of transaction, enter the details under individual types.

Presumptive Income Entry in Saral Income Tax - type of transaction

Enter the applicable details and click on Save.

Presumptive Income Entry in Saral Income Tax - save

Note:

The Presumptive Income percentage for calculation will be automatically taken (8% for Cash transaction and 6% for Digital Transaction, of Gross Receipt) and the Net presumptive income will be calculated.

Next, to enter the Presumptive Income from Trucks u/s 44AE, click on “…” button against Trucks (44AE).

Presumptive Income Entry in Saral Income Tax - Trucks u/s 44AE

Select the number of entries required to be done i.e., Heavy Goods types (owned. Leased, hired) and Others Goods type (owned. Leased, hired). Next, select the type of vehicles and whether it is owned / Leased / hired. In case of the multi type of trucks & ownership, enter the details under individual types.

Presumptive Income Entry in Saral Income Tax - number of entries

Enter the applicable details and click on Save.

Note:

The Presumptive Income calculation will be automatically done depending upon the weight of the truck and no. of months of usage (in case of heavy goods vehicle) and weight of the truck, no. of trucks used and no. of months of usage (in case of other goods vehicle).

In case of Professional income on presumptive basis i.e., income from a defined profession as listed under section 44ADA, click on “…” button against Profession income on a presumptive basis (44ADA) and enter the details.

Presumptive Income Entry in Saral Income Tax - Profession income on a presumptive basis

If there exists multiple profession, then increase the Number of Business and provide the details of individual business in individual columns.

Presumptive Income Entry in Saral Income Tax - multiple profession

Note:

The Presumptive Income percentage for calculation will be automatically taken (50% of Gross receipt) and the Net presumptive income will be calculated.

Enter the applicable details and click on Save.

If the Assessee is registered under GST (Goods and Services Tax), then the total turnover mentioned in GST Return is required to be updated in ITR.

To update the details, click on “…” button against Information regarding Turnover/Gross receipt reported for GST.

Presumptive Income Entry in Saral Income Tax - Turnover/Gross receipt reported for GST

In the window shown, enter the GSTIN and the total turnover (annual).

Presumptive Income Entry in Saral Income Tax - GSTIN and turnover

After entering the details, continue for other sections of ITR filing.

This completes the process on Presumptive Income Entry in Saral Income TaxSaral Income Tax.

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