Presumptive taxation: sections 58, 59 and 60 (old 44AD, 44ADA, 44AE)
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Updated 03 Oct 2026
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AI summary
Declare a fixed percentage as profit, skip detailed books, and the limits that decide who can use it.
4 sections
Business (old 44AD)
- For resident individuals, HUFs and partnership firms (not LLPs).
- Turnover up to ₹2 crore, or ₹3 crore if cash receipts are no more than 5% of turnover.
- Deemed profit: 6% of turnover received digitally or by banking channels (by the return due date), 8% of the rest.
Profession (old 44ADA)
- Doctors, lawyers, CAs, engineers, architects, consultants and similar.
- Gross receipts up to ₹50 lakh, or ₹75 lakh if cash receipts are no more than 5%.
- Deemed profit: 50% of receipts.
Goods carriage (old 44AE)
- Up to 10 goods vehicles at any time in the year.
- Heavy goods vehicle: ₹1,000 per tonne of gross vehicle weight per month. Others: ₹7,500 per vehicle per month.
Things to know
- No other expenses are deductible; the deemed profit is final.
- Advance tax can be paid in one go by 15 March.
- If you opt out of the business scheme, you can't come back for the next 5 years, and books plus audit may apply if income is above the basic exemption limit.
- Returns are usually filed in ITR-4.
Sources
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