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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%.
ITR
Cash-heavy kirana shop under presumptive scheme
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Provisions
Sec 44AD (now Sec 58); Sec 115BAC (now Sec 202)
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.
Close
- 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
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