How does the tax code define a small business?

In India, the tax code does not provide a specific definition for a small business. However, for tax purposes, small businesses are often classified based on their turnover or revenue. For instance, businesses with a turnover of up to Rs. 1.5 crores are classified as a "small business" under the GST regime, and they can opt for the Composition Scheme to simplify their tax compliance. Additionally, businesses with a turnover of up to Rs. 50 crores can opt for the presumptive taxation scheme under the Income Tax Act, which offers certain tax benefits and simplifies tax compliance.