Can a non-resident use the presumptive scheme in India?
That is the first question to answer, not the last, and it is answered by the scheme's own conditions rather than by how convenient the simpler return would be. Those conditions include residency, and they are not negotiable by preference. A filer who opts in without meeting them has simplified nothing: the year has to be recomposed on a return that computes profit from books, and the books then need to exist for a period during which nobody was keeping them. Establish eligibility before opting in, and record the basis on which you concluded you were eligible.
How is profit calculated under the presumptive scheme?
Profit is deemed as a proportion of turnover instead of being computed from books of account. That is the whole trade: you give up the accuracy of a real profit figure and get a much shorter return in exchange. It can fall either way in cash terms. Where actual margins are thinner than the deemed proportion, the scheme taxes profit you did not make; where they are fatter, it does the opposite. So make the choice on your own numbers rather than on the promise of simplicity — work out the real profit for the year, compare it with the deemed figure, and decide from that.
Do I still need books if I file the presumptive return?
The return does not compute profit from them, which is not the same as saying records do not matter. Turnover is the input the entire computation rests on, so it has to be supported, and eligibility has to be demonstrable for the year claimed. There is also the question of what happens when the scheme stops being available, or you decide to leave it: in the following year profit is computed from books, and books cannot be constructed backwards out of nothing. Keep records at a level that supports the turnover figure and would allow a real profit computation if one is needed.
Can I leave the presumptive scheme in a later year?
Opting in is not a decision for one year alone — the scheme constrains what you may do in later years, and that is the part filers rarely weigh when this year's simplicity is the attraction. Before opting in, map out what leaving would mean and when it would be possible on the conditions applying to your case. The practical advice is to treat it as a decision about several years and to keep records throughout at a standard that would support a computation from books, so that leaving is a change of method rather than a reconstruction exercise.
Is the presumptive return suitable for a small consultancy?
Possibly, and the answer turns on two things rather than one. First, eligibility: whether the activity and the filer both meet the scheme's conditions, residency and the turnover limits among them. Second, arithmetic: whether a profit deemed as a proportion of turnover is better or worse than the profit the practice actually makes. A consultancy carrying few costs may find the deemed figure favourable; one carrying staff, premises or subcontractors often does not. Do that comparison on the year's real numbers before opting in, because the decision reaches into later years as well as this one.
What happens if my turnover exceeds the scheme conditions?
The scheme stops being available for that year, and profit is then computed from books for a period in which the presumptive return implied none were needed. That is the sequence which causes trouble: turnover grows through the year, nobody notices the boundary until the filing is being prepared, and there is no accounting record to compute from. If your turnover is anywhere near the applicable limit, keep records through the year as though you will have to compute profit properly. Then, if the boundary is crossed, the extra work is preparation rather than reconstruction.
Who is an NRI for tax purposes?
Residence in India is decided by days present in the tax year, with a second limb that also counts days over the preceding four years, and separate rules for Indian citizens leaving for employment. Fall outside the tests and you are non-resident, taxed in India only on Indian-source income. Between full residence and non-residence sits RNOR — resident but not ordinarily resident — which shelters foreign income for a limited window after returning. See RNOR status.
What are Forms 15CA and 15CB for?
They clear a payment out of India. Form 15CA is the remitter's declaration of the payment and the tax withheld on it; Form 15CB is an accountant's certificate on the taxability of the amount, the treaty article relied on and the correct withholding rate. The bank generally will not execute the transfer without them, in the categories where they are required. The work is deciding the rate correctly, because the certificate is the record of that decision. See 15CA and 15CB certification.
