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CMA Intermediate · Direct and Indirect Taxation · Profits and Gains of Business or Profession

Under section 58 of the Income-tax Act, 2025, which of the following assessees is an 'eligible assessee' for the presumptive scheme at serial number 1 (general business)?

A resident HUF running a grocery business with no commission or agency income is eligible. The section limits eligibility to resident individuals, HUFs and firms other than LLPs, and excludes those with commission, brokerage or agency business, specified professions, or non-resident status.

  1. AA resident individual who earns commission income
  2. BA resident HUF running a grocery business with no agency or commission incomeCorrect
  3. CA limited liability partnership resident in India
  4. DA non-resident individual running a retail business

Explanation

An eligible assessee is a resident individual, HUF or firm other than an LLP, who does not carry on a specified profession, earn commission or brokerage, or carry on agency business. The resident HUF fits. The others fail through commission income, LLP status, or non-residence.

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