AdvertisementIncome Tax Act 2025: New presumptive tax rules may raise tax burden for small businesses, professionalsThe fiscal landscape for small business owners, freelancers, and independent consultants is undergoing a massive transformation. Navigating the Income Tax Act 2025 presumptive tax provisions has become the single most vital task for micro, small, and medium enterprises (MSMEs) aiming to protect their bottom line. The Structural Shift — Section 44AD vs Section 58To grasp why the Income Tax Act 2025 presumptive tax framework alters your out-of-pocket tax payouts, we must examine the architectural reorganization of the tax code. Under the legacy Income Tax Act of 1961, businesses and professionals relied on Section 44AD and Section 44ADA to file their returns effortlessly. If you choose the Income Tax Act 2025 presumptive tax approach, you cannot use those past losses to reduce your current presumptive income.