Presumptive & turnover tax calculator
Check whether your small business qualifies for the flat small-taxpayer presumptive tax, and see the flat annual amount by local-body type.
Enter your annual turnover, net profit and VAT status, an eligibility checklist flags any condition that fails. An indicative tool, computed entirely in your browser.
Business details
Total annual sales/receipts of the business, before any expenses.
Turnover minus business expenses, your net income for the year.
Where the business is registered. The flat presumptive tax amount depends only on this, not on how much profit the business actually made.
Eligibility check
- Annual turnover does not exceed Rs 30,00,000 (Rs 30 lakh)
- Annual net profit does not exceed Rs 3,00,000 (Rs 3 lakh)
- Not registered for VAT
Flat presumptive tax due
Rs 4,000
Annual flat amount for a Municipality business, per year, not a percentage of turnover or profit.
Metro / Sub-Metro
Rs 7,500
Municipality
Rs 4,000
Rural Municipality
Rs 2,500
An indicative estimate only, as of the small-taxpayer presumptive/turnover tax thresholds and flat amounts currently in force. It assumes a single business with one local-body registration and no other income. Confirm your exact obligation with the Inland Revenue Department or your tax adviser before relying on this figure.
Three conditions, one flat amount
The small-taxpayer presumptive tax trades the standard income-tax slabs for a single fixed annual amount, but only for businesses that meet every condition below.
All three checks must pass
Turnover under Rs 30 lakh, net profit under Rs 3 lakh, and no VAT registration. Fail any one and the flat presumptive tax no longer applies.
Flat amount by local body
Eligible businesses pay a fixed annual amount set by where they're registered: Rs 7,500 (Metro/Sub-Metro), Rs 4,000 (Municipality) or Rs 2,500 (Rural Municipality).
Not a percentage
The amount does not scale with turnover or profit within the eligible range, it depends only on the local-body type, keeping compliance simple for very small taxpayers.
Presumptive & turnover tax, answered
Who qualifies for the small-taxpayer presumptive tax?+
A resident individual running a small business qualifies when all three conditions hold at once: annual turnover under Rs 30 lakh (Rs 3,000,000), annual net profit under Rs 3 lakh (Rs 300,000), and the business is not registered for VAT. If any one of these fails, the business must instead compute tax on the standard income-tax slabs.
Is this instead of VAT, or as well as VAT?+
Instead of. A business that is VAT-registered cannot use the presumptive/turnover tax at all, it is only available to small taxpayers who have not registered for VAT. If your business registers for VAT during the year, you lose eligibility for the flat presumptive amount from that point.
What happens if my turnover exceeds the limit mid-year?+
Once your turnover crosses Rs 30 lakh (or your net profit crosses Rs 3 lakh, or you register for VAT), you no longer qualify for the flat presumptive tax and must move to the standard income-tax regime, computed on the normal slabs rather than a flat local-body amount. Track your turnover through the year so you notice the crossover promptly.
How is the flat amount decided, why not a percentage of turnover?+
The presumptive tax is a fixed annual amount set by the type of local body the business is registered in, Rs 7,500 for a Metropolitan or Sub-Metropolitan City, Rs 4,000 for a Municipality, and Rs 2,500 for a Rural Municipality, rather than a percentage of turnover or profit. This keeps compliance simple for very small taxpayers.
Does this calculator handle turnover-tax businesses above the presumptive limit?+
No. This tool covers only the small-taxpayer flat presumptive tax. If your turnover is at or above Rs 30 lakh but you may still qualify for a different turnover-tax treatment under other provisions, or for the standard slabs, use the income tax calculator instead, this tool does not compute that second regime.
Sources & data note
Based on the Income Tax Act 2058 small-taxpayer presumptive tax provisions (Schedule D-01) and the presumptive/turnover tax thresholds under Finance Act 2082. Figures are indicative, confirm your exact obligation with the Inland Revenue Department or your tax adviser before relying on this.