Can presumptive taxation simplify my small business or practice?
Reviewed June 2026
Presumptive taxation is the Income-tax Act's simplicity offer for eligible small businesses and professionals: declare income as a prescribed percentage of your turnover or receipts, and the law spares you detailed books of account and audit in most cases.
Small traders and manufacturers have their scheme, and specified professionals — doctors, lawyers, architects, consultants and the like — have a parallel one. Receiving payments digitally is rewarded with a kinder presumptive rate for businesses, a nice nudge toward clean banking trails.
Two things deserve thought before opting in: the declared percentage applies even if your actual margin is lower, and the schemes expect a degree of continuity once chosen. For many small practices the trade is excellent — radically less paperwork for a fair, predictable tax. We'll gladly check your eligibility and run the comparison both ways.
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This explainer simplifies the law on purpose and is general guidance, not advice on your specific facts. Rules, rates and thresholds evolve. For your situation, talk to us — that first conversation is exactly what we’re here for.