New Delhi, July 13 -- The new Income Tax Act, 2025, which replaces the Income Tax Act, 1961, has become applicable from 1 April 2025.

According to the government, there have been no policy changes-only simplification of the language and rationalization of the structure of the provisions. One area where this exercise is evident is presumptive taxation.

The 1961 Act had three separate presumptive taxation schemes-one for small businesses (6% or 8% of turnover, with turnover limits of Rs.2 crore/ Rs.3 crore), one for low-income professionals (50% of gross receipts, with receipt limits of Rs.50 lakh/ Rs.75 lakh), and one for transport operators of commercial goods vehicles (presumptive income based on vehicle capacity, subject to a limit of...