One of the key proposals in this Budget has been the introduction of a presumptive taxation scheme for professionals. This had been one of the recommendations of the Justice Easwar Committee, which has been accepted, though in a modified form. A similar presumptive scheme has been in existence for many years for small businesses. How does the new scheme work, and how would it impact professionals?
The scheme would apply to all professionals from the next financial year, i.e. 2016-17. Professionals would mean lawyers, doctors, engineers, architects, chartered accountants, technical consultants, interior decorators, film artists (actors, cameramen, directors, music directors, art directors, dance directors, editors, singers, lyricists, story writers, screenplay writers, dialogue writers and dress designers), income tax consultants (who qualify as authorised representatives), company secretaries and information technology professionals. It would apply not just to individuals carrying on such professions but also to other entities such as partnership firms and limited liability partnerships engaged in such professions.
