Merchandise Stores
Merchandise Stores, Yes, grocery and merchandise stores fall within the purview of (ITR) Income tax return filing if their yearly turnover surpasses Rs. 2 crore.
Yet, an alternative exists in the form of the presumptive taxation scheme under Section 44AD of the Income Tax Act, 1961, catering to those with a turnover below Rs. 1 crore.
Within this framework, a simple 8% of turnover can be declared as the individual’s income, obviating the need for extensive bookkeeping.
The appropriate ITR form for a grocery or merchandise store hinges on its annual turnover and whether the presumptive taxation scheme is adopted. For turnovers under Rs. 2 crore without presumptive taxation, ITR-3 is requisite. Opting for the presumptive scheme with turnovers under Rs. 1 crore calls for filing ITR-4S. Meanwhile, turnovers of Rs. 2 crore or more mandate the submission of ITR-5.
It’s noteworthy that even if ITR filing isn’t mandatory for such stores, there’s merit in doing so. This avenue enables the store to claim various deductions and exemptions, effectively mitigating its tax obligations.
Below are deductions and exemptions accessible to grocery and merchandise stores through their ITR filings:
- Depreciation on fixed assets
- Interest on loans
- Business premises rent payments
- Charitable donations
- Medical expenses
- Education expenditures
