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CS Executive · Tax Laws and Practice · Profits and Gains from Business and Profession

Under the Income-tax Act, 2025 (applicable from the June 2027 session), which of the following assessees is an "eligible assessee" who can opt for the presumptive scheme for a business other than plying goods carriages (Sl. No. 1 of the table in section 58)?

A resident individual running a retail shop and not claiming Chapter VIII-C deductions is an eligible assessee. LLPs, commission or brokerage earners, agency businesses and non-residents are excluded under the definition in section 58(11)(a), so only the shop owner qualifies for the presumptive scheme.

  1. AA resident individual running a retail provisions shop who has not claimed any deduction under Chapter VIII-CCorrect
  2. BA resident limited liability partnership running a trading business
  3. CA resident individual earning commission income from selling insurance products
  4. DA non-resident firm running a trading business in India

Explanation

Section 58(11)(a) defines an eligible assessee as a resident individual, HUF or firm other than an LLP who has not claimed Chapter VIII-C deduction, does not carry on a specified profession, earns no commission or brokerage income and does not carry on agency business. Only the retail shop owner meets these conditions. An LLP is excluded, commission earners are excluded, and a non-resident is not resident in India.

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