What will happen if I initially adopt the Presumptive Taxation Scheme for a small business and then decide not to use it in any of the subsequent five years?

February 05, 2024 11:11

If your turnover is less than 2 crore rupees, you must remain using Presumptive Taxation Scheme (PTS) for the following five years. If you declare profits that are less than 8% (or 6%), even after having a turnover of less than 2 crores in any of the following five years, this is regarded as a withdrawal from PTS, and you are prohibited from using PTS for the following five years starting with the assessment year in which you had withdrawn from PTS.

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