Section 58 — Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents

(1) The provisions of sections 26 to 54, to the extent contrary to this section,
shall not apply to the manner of computation of profits and gains of the spec-
ified business or profession in sub-section (2).
(2) The profits and gains of any specified business or profession as mentioned in
column B of the Table below, carried on by an assessee specified in column C of the
said Table, having total turnover or gross receipts of business or profession during
the tax year specified in column D and computed in the manner specified in column
E thereof, shall be deemed to be the profits and gains of such business or profession
chargeable to tax under the head “Profits and gains of business or profession”.
TABLE
Sl.
No.
Specified
business or
profession
Assessee Total turnover or, as
the case may be, gross
receipts of business or
profession during tax
year
Manner of computation
A B C D E
1. Any business
other than
the business
specified ag-
ainst serial
number 2.
Eligible
assessee.
( a) Does not exceed
two crore rupees;
or
( b) does not exceed
three crore rupees,
where the amount
or aggregate of
amounts received,
in cash, does not
exceed 5% of the
total turnover or
gross receipts.
(A) The aggregate of—
( i) 6% of total
turnover or
gross receipts
which is re -
ceived by spec -
ified banking
or online mode
during the tax
year or before
the due date
specified in
section 263(1)
in respect of
that tax year;
( ii) 8% of total
turnover or
gross receipts
as reduced by
the turnover or
gross receipts
covered in (i); or
(B) profit claimed to
have been actually
earned,
whichever is higher.
2. Business of
plying, hir -
ing or leas -
ing goods
carriage.
An assessee,
who owns
not more
than ten
goods car -
riages at any
time during
the tax year.
(A) The aggregate of
income from goods
carriage:—
( i) being a heavy
goods vehi -
cle, calculated
at the rate of
` 1000 per ton
of gross vehicle
weight or un -
laden weight,
as the case may
be, for each
Sl.
No.
Specified
business or
profession
Assessee Total turnover or, as
the case may be, gross
receipts of business or
profession during tax
year
Manner of computation
A B C D E
vehicle, for ev -
ery month or
part of a month
during which
such vehicle is
owned by the
assessee in the
tax year;
( ii) being a vehi -
cle other than
heavy goods
vehicle, calcu -
lated at the rate
of ` 7,500 for
each goods car-
riage for every
month or part of
a month during
which the vehi-
cle is owned by
the assessee in
the tax year; or
( B) profit claimed to
have been actually
earned,
whichever is higher.
3. Specified
profession
as referred
to in section
62(4).
Specified
assessee.
( a) Does not exceed
fifty lakh rupees; or
( b) does not exceed
seventy-five lakh
rupees,
where the amount or
aggregate of amounts
received in cash does
not exceed 5% of the
gross receipts.
50% of the gross receipts
or profit claimed to have
been actually earned,
whichever is higher.
(3) Any assessee mentioned in column C of the Table in sub-section (2), who claims
that—
( a) the profits or gains actually earned from the specified business or
profession are lower than the profits or gains computed in the manner
mentioned in column E of the said Table; and
( b) whose total income exceeds the maximum amount which is not charge-
able to tax,
shall be required to—
( i) keep and maintain such books of account and other documents as
required under section 62; and
( ii) get the accounts audited and furnish a report of such audit as required
under section 63.
(4) Any loss, allowance or deduction allowable under the provisions of this Act,
shall not be allowed against the income computed in the manner specified in
sub-section (2).
(5) For the purposes of sub-section (2) (Table: Sl. No. 2), where the assessee is a
firm, the salary and interest paid to its partners shall be deducted from the income
computed under sub-section (1) subject to the conditions and limits specified in
section 35(e).
(6) The written down value of any asset used for the purposes of specified business
or profession shall be computed as if the assessee mentioned in column C of the
Table in sub-section (2) had claimed and was actually allowed deduction in respect
of depreciation thereon for each of the relevant tax years.
(7) Where an eligible assessee declares profit for any tax year as per the provisions
of sub-section (2) (Table: Sl. No. 1) and he declares profit for any of the five tax
years succeeding such tax year in contravention of the provisions of sub-section (1),
then he shall not be eligible to claim the benefit of the provisions of this section for
five tax years subsequent to the tax year in which the profit has not been declared
as per the provisions of the said sub-section.
(8) Irrespective of anything contained in foregoing provision of this section, where
provisions of sub-section (7) are applicable to an eligible assessee and his total in-
come exceeds the maximum amount which is not chargeable to income-tax, he shall
be required to keep and maintain such books of account and other documents as
required under section 62 and get them audited and furnish a report of such audit
as required under section 63.
(9) For the purposes of sub-section (2) (Table: Sl. Nos. 1 and 3), the receipt of amount
or aggregate of amounts by a cheque drawn on a bank or by a bank draft, which is
not account payee, shall be deemed to be the receipt in cash.
(10) The provisions of sections 62 and 63 shall not apply in so far as they relate to
the business referred to in sub-section (2) (Table: Sl. No. 2) and in computing the
monetary limits under those sections, the gross receipts or, as the case may be, the
income from the said business shall be excluded.
(11) For the purposes of this section,—
( a) “eligible assessee” means an individual, a Hindu undivided family, or
a firm other than a limited liability partnership, who is resident in
India, and who—
( i) 8[***]
( ii) has not claimed any deduction under Chapter VIII-C for the
relevant tax year;
( iii) does not carry on specified profession as defined in section 62(4);
( iv) does not earn any income in the nature of commission or broke-
rage;
( v) does not carry on any agency business;
( b) “specified assessee” means an individual or a firm, other than a limited
liability partnership, who is a resident in India;
( c) “limited liability partnership” shall have the same meaning as assigned
to it in section 2(1)( n) of the Limited Liability Partnership Act, 2008
(6 of 2009);
( d) the expressions “goods carriage”, “gross vehicle weight” and “unladen
weight” shall have the same meaning as respectively assigned to them
in section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
( e) “heavy goods vehicle” means any goods carriage, the gross vehicle weight
of which exceeds 12,000 kilograms; and
( f) an assessee, who is in possession of a goods carriage, whether taken on
hire purchase or on instalments and for which the whole or part of the
amount payable is still due, shall be deemed to be the owner of such
goods carriage.