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Money from your profession is offered at a lower amount than fifty% in the gross receipts (i.e., the expenditures click here for being claimed is greater than fifty% of the gross receipts) and the overall earnings is in excess of The fundamental exemption.

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The presumptive plan of taxation decreases the compliance burden on modest professions and facilitates ease of carrying out business. Underneath the presumptive scheme of taxation, profits/taxable cash flow is presumed at fifty% of the gross receipts.