24/02/2026
Section 58 – Presumptive Taxation (Income-tax Act, 2025)
A Simplified & Merged Framework for Small Taxpayers
The Income-tax Act, 2025 introduces Section 58, consolidating earlier presumptive provisions (44AD, 44ADA & 44AE) into a single streamlined framework for businesses, professionals and transport operators.
🔹 1️⃣ Business (Small Taxpayers)
✔ Eligible: Resident Individual / HUF / Firm (other than LLP)
✔ Turnover Limit:
• Up to ₹2 Crore
• Up to ₹3 Crore where cash receipts ≤ 5%
✔ Presumptive Income:
• 6% (Digital receipts)
• 8% (Cash receipts)
• Or Actual Profit (whichever is higher)
✔ 5-Year Lock-in applies
🔹 2️⃣ Goods Carriage (Transporters)
✔ Condition: Maximum 10 vehicles at any time
✔ Income Deemed as:
• ₹1,000 per ton/month (Heavy vehicles >12,000 kg)
• ₹7,500 per month (Other vehicles)
✔ Part of month treated as full month
✔ No 5-year lock-in
🔹 3️⃣ Specified Professionals
✔ Gross Receipts:
• Up to ₹50 Lakhs
• Up to ₹75 Lakhs where cash ≤ 5%
✔ Income: 50% of Gross Receipts or Actual Profit (higher)
🔹 Common Provisions
• No separate expense deduction
• Depreciation deemed allowed (WDV adjusted)
• Sections 26–54 overridden
• Chapter VI-A deductions permitted
📌 Key Insight:
Section 58 enhances compliance simplicity, encourages digital transactions, and creates a uniform presumptive taxation regime with clearer thresholds and conditions.
CA shubham Agrawal
081097 74382