ITR
Cash-heavy kirana shop under presumptive scheme
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Facts
Cash receipts are taxed at a minimum of 8% under Sec 44AD. With mostly cash sales, the turnover limit is ₹2 crore, since the higher ₹3 crore limit needs cash receipts within 5%.
Provisions and law
- Sec 44AD (now Sec 58)Presumptive business income at 6% of digital and 8% of other receipts for eligible businesses
- Sec 115BAC (now Sec 202)New regime slab rates apply by default
Analysis
On ₹60,00,000 cash sales, minimum income is ₹4,80,000. Under the new regime for AY 2026-27, income up to ₹12 lakh gets full rebate under Sec 87A for residents, so tax may be nil if this is your only income. Encouraging UPI payments would reduce the presumptive rate to 6% on those receipts. Keep daily sales records in case of a query.
Conclusion
- Total cash and digital sales for the year
- Apply 8% on cash and 6% on digital
- Check tax under both regimes, including rebate
- File ITR-4 and keep sales records
A Savvy can do this for you
Presumptive income tax return, ITR-4 (Sugam), Sec 58 (old 44AD, 44ADA, 44AE)
₹1,999
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