New Delhi, July 13 -- For many small businesses and professionals, presumptive taxation offers an easier way to file income tax returns. Instead of maintaining detailed books of account and calculating actual profits, eligible taxpayers can declare income at prescribed rates and meet their tax obligations with fewer compliance requirements.

But tax experts say the simplified scheme is not necessarily the best option for every taxpayer.

"The scheme is designed to reduce compliance where income can reasonably be presumed from turnover, receipts or vehicle capacity," said CA Chandni Anandan, Tax Expert at ClearTax.

While the regime reduces paperwork, taxpayers should evaluate whether the simplified method aligns with their business before...