What is the presumptive taxation limit and profit rate for professionals under Section 44ADA?
I am a freelance consultant and want to know if I can declare income on a presumptive basis.
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AICOUNTLY Income Tax Desk
Compliance
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Section 44ADA lets specified resident professionals (such as doctors, lawyers, architects, engineers, accountants and consultants) declare profit at 50% of gross receipts, without maintaining detailed books. It applies when gross receipts do not exceed Rs 50 lakh in the year, or Rs 75 lakh if cash receipts are not more than 5% of the total.
If you declare a lower profit than 50% and your income exceeds the basic exemption limit, you must maintain books and get them audited. Whether the scheme suits you depends on your own expenses, so confirm with your CA before opting for it.
AICOUNTLY Income Tax Desk · 2h ago
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