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  Section 44AD – Presumptive Taxation Scheme under Income Tax Act Complete Practical Guide for Small Businesses For small businesses, maintaining regular books of account, preparing financial statements, and complying with audit requirements can often become time-consuming as well as costly. To reduce such compliance burden, the Income-tax Act provides a simplified taxation mechanism under Section 44AD, popularly known as the presumptive taxation scheme. The scheme allows eligible taxpayers to declare income at prescribed rates without maintaining detailed books of account. Due to comparatively simpler compliance requirements, Section 44AD has become one of the most widely used provisions among small businesses. Under the proposed Income-tax Act, 2025, the presumptive taxation provisions contained under Sections 44AD, 44ADA and 44AE are proposed to be broadly consolidated under Section 58 with simplified drafting structure. What is Section 44AD? Presumptive Income = 8 % × Turno...
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Form 26QB (New Form 141)

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  It’s No Longer Form 26QB — Know All About New Form No. 141  [ For Property Purchase TDS Compliance ] The Income Tax Department has now shifted TDS compliance for purchase of immovable property from old Form 26QB to the newly introduced Form No. 141 on the Income Tax e-filing portal. This is not merely a change of form number or portal. The new reporting mechanism introduces a considerably more detailed compliance structure, especially in cases involving multiple buyers, multiple sellers, co-owned properties and instalment-based payment arrangements. While the earlier Form 26QB mechanism was comparatively simple for straightforward transactions, the new Form No. 141 framework attempts to bring centralized reporting, structured transaction mapping and better allocation reporting. At the same time, several practical filing concerns are also being experienced by taxpayers and professionals during the initial implementation phase. In this article, we discuss the important changes...
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  Before May Ends… Have You Completed These Important Compliances? As May 2026 approaches its end, many businesses, LLPs, professionals and taxpayers are gradually preparing themselves for the upcoming income tax return season. However, before moving towards ITR filing and year-end tax planning, several important statutory compliances require immediate attention. Every year, numerous taxpayers end up facing late fees, notices, portal restrictions and unnecessary compliance pressure simply because certain due dates are either overlooked or attended at the last moment. In many cases, the issue is not intentional non-compliance, but delayed preparation. Certain compliances falling at the end of May and during June directly impact: TDS credit appearing in Form 26AS, issuance of Form-16 and Form-16A, ROC compliance status of LLPs and companies, import-export operations, reconciliation during ITR filing, and future departmental assessments. Below are some important compliances which busi...
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  TDS Is Not Simply TDS … It Is TEDIOUS ! If You Ignore It, It Can Become Costly… 🚨 TDS Is Not Simply “TDS”... It Is Actually “TEDIOUS”! If you do not take TDS compliance seriously, it may become one of the costliest mistakes in your business. Most businesses think TDS is just about deducting tax and depositing it. But practically, TDS compliance is a complete chain of responsibilities. And if even one step is ignored, delayed, or incorrectly handled, the consequences may include: ✔ Interest ✔ Late fees ✔ Penalties ✔ Notices from the Income Tax Department ✔ Disallowance of expenses ✔ “Assessee in Default” status ✔ Even prosecution in serious cases 🔴 1. Deduct TDS on Time... Otherwise????? Many taxpayers fail at the very first stage itself. TDS is required to be deducted at the time of: payment, or credit to the party account, whichever is earlier (subject to applicable provisions). Failure to deduct TDS may result in: ⚠ Interest liability ⚠ Penalty proceedings ⚠ Disallowance of...
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  Are You an MSME Registered Business??????? Then This Is Specially for You... Get Business Funding Without Property Mortgage! You May Be Eligible for Collateral-Free Business Funding with Government Guarantee Support Many MSME registered businesses are still unaware that they may be eligible for collateral-free business loans from banks and financial institutions under Government-backed guarantee schemes. Yes... in many eligible cases, you may get business funding without mortgaging your house, shop, office, or any other major property. Today, banks are increasingly considering GST compliance, business turnover, banking transactions, Income Tax Returns, and MSME/Udyam Registration while evaluating business loan applications. This creates a major opportunity for genuine traders and small businesses who maintain proper financial records and regular compliance. What Is the Major Benefit for MSME Registered Traders? Under various MSME support initiatives and Government-backed guarante...
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  Are you planning to file your ITR right now? Wait...! Although ITR-1 and ITR-4 have been enabled by the Income Tax Department for A.Y. 2026-27, taxpayers are advised not to file their Income Tax Returns immediately and should preferably wait at least until 10th June 2026. Why should you wait before filing your ITR? TDS/TCS details may not yet be fully reflected in Form 26AS and AIS/TIS. Banks, employers, and financial institutions may still be updating data relating to interest income, salary, dividends, and other transactions. Form 16 may not yet have been issued by all employers. AIS/TIS data may continue to get updated during the initial weeks. The Income Tax Department may release updates, corrections, or changes in ITR utilities and validations. Early filing without proper reconciliation may lead to defective returns, mismatch notices, or the need to file Revised Returns later. Therefore, it is advisable to wait until complete tax information is properly updated and reconcil...
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Income Tax Returns (ITRs) for the Financial Year 2025-26 (A.Y. 2026-27) The Income Tax Department has started accepting Income Tax Returns for A.Y. 2026-27 (i.e., F.Y. 2025-26) and has enabled filing of ITR-1 and ITR-4. ITR-1 is mainly applicable for taxpayers having income from Salary, One House Property, Interest, and other income under the head “Income from Other Sources”. If you have income under the head “PGBP” (Profits and Gains from Business or Profession), then you are not eligible to file ITR-1 and are required to file the respective ITR form as per the applicable provisions of the Income Tax Act. If you have income under the head “PGBP” (Profits and Gains from Business or Profession), are eligible for the presumptive taxation scheme, are not required to get your books of accounts audited, and are not a Company, LLP, Partnership Firm, Trust, or AOP, then you may file your business/professional income tax return using ITR-4, subject to prescribed conditions.
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