Presumptive income under the New Income Tax Bill, 2025:

1.  Introduction:

The new Income Tax Bill introduces significant changes to presumptive taxation under Section 58, which consolidates Sections 44AD, 44ADA, and 44AE of the Income Tax Act, 1961.

2.  What is the proposed change?

Section 58(4) of the new Income Tax Bill, disallows all deductions and loss set-offs against income computed presumptively.

This contrasts with the current provisions, where deductions under Sections 30 to 38 are deemed already accounted for but allow other losses or deductions.

3.  Implication:

So, A resident individual cannot set off the loss of a business computed by maintaining books of accounts, losses on letting out of house property, earlier year business loss, Chapter VIA deductions, etc against the income offered for a business computed on presumptive basis.