1Can a medical store owner use the 44AD presumptive scheme?
Yes, if turnover is within Rs 2 crore (Rs 3 crore where cash is 5% or less) — but pharmacies are low-margin , so check whether actual books with real expenses save more before opting in.
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ArticlePharmacists running a medical store earn business income with real stock, premises and staff costs, plus GST to manage. Here's how pharmacy owners can save tax and stay compliant.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
Running a pharmacy is business income — so the 44AD scheme, stock and overhead claims, GST discipline and advance tax are the levers. Here's how.
If your turnover is within Rs 2 crore (Rs 3 crore where cash receipts are 5% or less), Section 44AD lets you declare 8% of turnover (6% on digital receipts) as income with no audit and no detailed books. But pharmacies are typically low-margin, so check whether actual books save more before opting in.
Because medicine retail runs on thin margins, keeping books and claiming real costs — cost of goods, shop rent, staff wages, electricity, refrigeration, licences and depreciation on fittings — often produces lower taxable income than the presumptive rate. Maintain clean purchase and sales records.
Pharmacies deal with GST on purchases and sales at varying rates; getting registration, rate classification and input-tax-credit treatment right keeps you compliant and avoids penalties. This is separate from income tax but central to a medical store.
If you do use 44AD, the presumptive rate is 6% on digital receipts versus 8% on cash, so accepting UPI and cards lowers your declared income and keeps cleaner records too.
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.
Yes, if turnover is within Rs 2 crore (Rs 3 crore where cash is 5% or less) — but pharmacies are low-margin , so check whether actual books with real expenses save more before opting in.
Cost of goods, shop rent, staff wages, electricity, refrigeration, licences and depreciation on fittings , when you keep books. In a thin-margin business these often beat the presumptive rate.
Yes — GST on purchases and sales is separate from income tax. Getting registration, rate classification and input-credit treatment right keeps you compliant and avoids penalties.
Running a pharmacy? Write to the firm and we'll work out whether presumptive or actual books saves you more, and keep your GST clean.