Gross Receipts

Gross Receipts – Gross receipts refer to the total amount of money or value received by a business or individual from all sources during a specific financial year, before any deductions or expenses are made. They include income from sales, services rendered, interest, dividends, rents, and other business-related earnings. Gross receipts are an important metric used for calculating taxable income, determining eligibility for certain tax schemes (like presumptive taxation under Sections 44AD, 44ADA, or 44AE), and assessing overall business performance.

Example: A consulting firm earns ₹50 lakh in FY 2022–23 from client fees, rent, and commissions. The total ₹50 lakh represents its gross receipts, assessed in AY 2023–24