The Income Tax department has framed two schemes under the presumptive income scheme for small taxpayers under section 44AD & section 44AE.
In case, you are not covered under the Presumptive Business Scheme, your taxable business income will be computed in the following manner:
|Turnover or gross receipts from the business
|Less : Expenses incurred in relation to earning of the income
|Taxable Business Income
For the purpose of computing taxable business income in the above manner, the taxpayers have to maintain books of account of the business and income will be computed on the basis of the information revealed in the books of account.