Economics · Economy
Recently seen in the news, the term 'Presumptive Taxation' refers to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A retrospective tax framework applicable to non-resident companies based on past business connections in India.
- 2A simplified taxation mechanism where income is calculated on a fixed deemed profit percentage of gross receipts, without detailed profit attribution.✓
- 3A regime allowing foreign and domestic firms to pay tax on actual profits, determined through mandatory audits and balance-sheet disclosures.
- 4A tax system under which profits are assessed only after detailed functional and transfer pricing analysis of business operations.
Correct answer
A simplified taxation mechanism where income is calculated on a fixed deemed profit percentage of gross receipts, without detailed profit attribution.
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