1Can a jeweller use the 44AD presumptive scheme?
Only if turnover is within Rs 2 crore (Rs 3 crore where cash is 5% or less). Many jewellers exceed this and keep books — which, with thin margins, often saves more than the presumptive rate anyway.
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ArticleJewellers run a high-value, often thin-margin business with significant stock, GST and reporting obligations. The tax saving lies in clean books and claiming every genuine cost. Here's how jewellers can save tax and stay compliant.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
Jewellery is a business with high-value stock, GST and TCS rules — so expense claims, the right scheme and clean records are key. Here's how.
If your turnover is within Rs 2 crore (Rs 3 crore where cash receipts are 5% or less), Section 44AD allows declaring 8% (6% digital) as income with no audit. Many jewellers exceed this turnover, in which case you keep books and claim actual expenses — which, given thin margins, often saves more anyway.
Deduct cost of goods, making charges, shop rent, staff wages, insurance, security, and depreciation on fittings and equipment. In a high-turnover, thin-margin trade, actual expenses typically produce far lower taxable income than a presumptive percentage.
Jewellery has specific GST treatment and high-value-transaction reporting. Accurate stock, purchase and sales records keep you compliant, support your expense claims, and are essential if your accounts are examined. This is central to a jewellery business.
High-value sales may attract TCS, and large cash transactions are reported. Handle TCS correctly and steer customers toward traceable payments — it keeps you compliant and your records clean.
On your personal return, use 80C, the Rs 50,000 NPS and 80D health insurance in the old regime. With no TDS on business income, pay advance tax in the four instalments if your tax exceeds Rs 10,000, to avoid 234B/234C interest.
Only if turnover is within Rs 2 crore (Rs 3 crore where cash is 5% or less). Many jewellers exceed this and keep books — which, with thin margins, often saves more than the presumptive rate anyway.
Cost of goods, making charges, rent, staff, insurance, security and depreciation on fittings , when you keep books — typically producing much lower taxable income than a presumptive percentage.
High-value sales may attract TCS, and large cash transactions are reported. Handle TCS correctly and encourage traceable payments to stay compliant and keep records clean.
Running a jewellery business? Write to the firm and we'll keep your books, GST and TCS clean and your tax right.