Presumptive Taxation Scheme Guide (44AD & 44ADA)

Learn how to file under Section 44AD (businesses) and Section 44ADA (professionals) without maintaining books of accounts or undergoing tax audits.

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Presumptive Taxation Scheme Guide (44AD & 44ADA)

Learn how to file under Section 44AD (businesses) and Section 44ADA (professionals) without maintaining books of account…

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About the Resource

This resource was developed by tax experts and qualified Chartered Accountants to simplify your income tax compliance. Reconciling tax credits and organising document trails reduces errors and filing delays.

Disclaimer: This resource is for educational purposes only and does not replace professional advice from a qualified CA or tax consultant.

Reconcile Tax Credits

Ensure your salary, business receipts, TDS, TCS, and tax payments match Form 26AS and AIS/TIS entries.

Claim All Deductions

Check eligibility for Section 80C, 80D, 80E, 80G, and HRA benefits to minimize tax liabilities.

What is Included

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Section 44AD Business Limits

₹3 crore turnover limit and 8%/6% profit declaration rules.

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Section 44ADA Professional Limits

₹75 lakh limit and 50% profit rate for CAs, doctors, engineers.

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Section 44AE Transporter Rules

Presumptive profit per truck/vehicle details.

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5-Year Lock-in Rule

Understand the penalties of opting out of the scheme.

Who Should Use This

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Small Traders

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Freelance Developers

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Consultants & Doctors

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Tax Advisors

Benefits

Filing made simple

Declare profit at flat rates and skip detailed bookkeeping.

No audit pressure

Filing within presumptive limits exempts you from Section 44AB audits.

Digital receipt benefits

Declare lower profit (6%) on digital transactions to save tax.

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Frequently Asked Questions

What is presumptive taxation?
It is a scheme allowing small taxpayers to declare income at a flat percentage of turnover without maintaining ledger books.
Can LLPs file under Section 44AD?
No, Section 44AD is restricted to Resident Individuals, HUFs, and Partnership Firms (excluding LLPs).
Is this guide free?
Yes, it is 100% free.