{"id":606,"date":"2026-05-01T11:13:54","date_gmt":"2026-05-01T05:43:54","guid":{"rendered":"https:\/\/prodigypro.co.in\/blog\/?p=606"},"modified":"2026-05-01T11:13:56","modified_gmt":"2026-05-01T05:43:56","slug":"presumptive-taxation-in-india","status":"publish","type":"post","link":"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/","title":{"rendered":"All About Presumptive Taxation in India: Benefits, Rules &amp; Filing Process"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Presumptive-Taxation-1024x576.webp\" alt=\"Presumptive Taxation\" class=\"wp-image-614\" srcset=\"https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Presumptive-Taxation-1024x576.webp 1024w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Presumptive-Taxation-300x169.webp 300w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Presumptive-Taxation-768x432.webp 768w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Presumptive-Taxation-1536x864.webp 1536w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Presumptive-Taxation-2048x1152.webp 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Presumptive_Taxation\" >Presumptive Taxation<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Provisions_under_Income_Tax_Act_Sections_44AD_44ADA_44AE\" >Provisions under Income Tax Act (Sections 44AD, 44ADA, 44AE)&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Presumptive_Taxation_for_Businesses_and_Professionals\" >Presumptive Taxation for Businesses and Professionals&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Key_Rules_Tax_Compliance_and_ITR_Filing\" >Key Rules, Tax Compliance and ITR Filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Benefits_GST_and_Other_Aspects_of_Presumptive_Taxation\" >Benefits, GST and Other Aspects of Presumptive Taxation&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Section_44AE_Tax_Simplification_for_Transporters\" >Section 44AE: Tax Simplification for Transporters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Business_Income_Tax\" >Business Income Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Audit_Exemption_Limit\" >Audit Exemption Limit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#ITR_Filing\" >ITR Filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Presumptive_Tax_Benefits_Simplifying_Taxation_for_Small_Businesses\" >Presumptive Tax Benefits: Simplifying Taxation for Small Businesses<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#What_is_presumptive_taxation\" >What is presumptive taxation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Who_can_opt_for_presumptive_taxation\" >Who can opt for presumptive taxation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#What_is_the_income_estimation_method_under_Section_44AD\" >What is the income estimation method under Section 44AD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#How_much_income_is_estimated_for_professionals_under_Section_44ADA\" >How much income is estimated for professionals under Section 44ADA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/prodigypro.co.in\/blog\/presumptive-taxation-in-india\/#Is_tax_audit_required_if_I_opt_for_presumptive_taxation\" >Is tax audit required if I opt for presumptive taxation?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Presumptive_Taxation\"><\/span>Presumptive Taxation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tax submission may seem daunting, particularly for small business operators and solo professionals with involved income and expense accounts. To simplify matters, several countries, including India, provide a facility known as presumptive taxation.<\/p>\n\n\n\n<p>But what does it signify, and whom can it benefit? Let&#8217;s dissect it.<\/p>\n\n\n\n<p>Presumptive taxation is a simplified method for specific taxpayers to compute and remit their income tax.<\/p>\n\n\n\n<p>Rather than maintaining detailed books of accounts and computing profits from actual receipts and expenses, taxpayers can report a fixed percentage of overall turnover or receipts as their income.<\/p>\n\n\n\n<p>This system assumes that a certain part of a taxpayer&#8217;s total income is their profit \u2014 hence the term &#8220;presumptive\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Provisions_under_Income_Tax_Act_Sections_44AD_44ADA_44AE\"><\/span><strong>Provisions under Income Tax Act (Sections 44AD, 44ADA, 44AE)&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Managing taxes can get tricky, especially for small business owners and professionals.To simplify the process, there are special sections \u2014 44AD and 44ADA \u2014 of the Indian Income Tax Act under the presumptive taxation system.<\/p>\n\n\n\n<p>Let&#8217;s demystify what each section is, who is eligible to use them, and how they function.<\/p>\n\n\n\n<p><strong>What is Section 44AD?<\/strong><\/p>\n\n\n\n<p>Section 44AD is for small enterprises to ease their tax return process.<\/p>\n\n\n\n<p>Rather than computing the profits on the basis of actual receipts and expenditures, companies may opt to claim a deemed income depending on their gross turnover.<\/p>\n\n\n\n<p><strong>Who can avail of Section 44AD?<\/strong><\/p>\n\n\n\n<p><strong>Eligible Assessees:<\/strong><\/p>\n\n\n\n<p>Resident individuals (sole proprietors)<\/p>\n\n\n\n<p>Hindu Undivided Families (HUFs)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Presumptive_Taxation_for_Businesses_and_Professionals\"><\/span><strong>Presumptive Taxation for Businesses and Professionals&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For small businesses and freelancers, taxes can always seem like an overwhelming task. Keeping track of every invoice, every expense, and then sitting down to write out detailed accounts can be a time-consuming endeavor \u2014 time better spent on taking your business forward.<\/p>\n\n\n\n<p>That is why the government introduced presumptive taxation schemes under Sections 44AD and 44ADA of the Income Tax Act. They provide a quick, hassle-free solution to tackling your taxes.<\/p>\n\n\n\n<p>Presumptive Taxation for Small Businesses (Section 44AD)<\/p>\n\n\n\n<p>If you own a small shop, offer services, or run any business with moderate turnover, Section 44AD is for you.<\/p>\n\n\n\n<p><strong>Who Can Avail It?<\/strong><\/p>\n\n\n\n<p>Sole traders (individuals), Hindu Undivided Families (HUFs), and partnership firms (not LLPs).<\/p>\n\n\n\n<p>Your gross receipts or total turnover should be up to \u20b92 crore in a financial year.<\/p>\n\n\n\n<p><strong>How It Works:<\/strong><\/p>\n\n\n\n<p>You report your profit as a percentage of your turnover \u2014 no need to keep complete books of accounts.<\/p>\n\n\n\n<p>If you get most payments online, you can report 6% of your turnover as profit.<\/p>\n\n\n\n<p>If you transact largely in cash<\/p>\n\n\n\n<p>Managing taxes can be a part-time occupation for professionals such as doctors, lawyers, architects, and consultants. Maintaining records of income, expenditure, and making detailed financial statements tends to cut into precious working hours.<\/p>\n\n\n\n<p>To simplify matters, the Income Tax Act provides an easier option under Section 44ADA \u2014 specifically for professionals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Rules_Tax_Compliance_and_ITR_Filing\"><\/span><strong>Key Rules, Tax Compliance and ITR Filing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When small companies opt to pay taxes under the presumptive taxation regime (i.e., under Section 44AD of the Income Tax Act), they are not required to keep books of accounts.<\/p>\n\n\n\n<p>Instead, they can just announce a proportionate percentage of their overall turnover as income \u2014 and that is where the 8% rule of income comes into play.<\/p>\n\n\n\n<p>Under Section 44AD, if a small business opts for presumptive taxation:<\/p>\n\n\n\n<p>It must declare at least 8% of its total turnover or gross receipts as its deemed income (taxable income).<\/p>\n\n\n\n<p><strong>Tax Audit Exemption: Who Needs It and Who Doesn\u2019t?<\/strong><\/p>\n\n\n\n<p>When it comes to filing income tax returns, many people worry about the tax audit requirement.<\/p>\n\n\n\n<p>A tax audit refers to a close scrutiny of your books of accounts to check your income and deductions.<\/p>\n\n\n\n<p>Yet, the Income Tax Act has tax audit exemptions for some taxpayers \u2014 particularly small enterprises and professionals who go for presumptive taxation.<\/p>\n\n\n\n<p><strong>What is ITR-4 Sugam Form)?<\/strong><\/p>\n\n\n\n<p>In filing income tax returns, selecting the right form is crucial.<\/p>\n\n\n\n<p>If you own a small business, are a freelancer, or a professional opting for presumptive taxation, then ITR-4 (popularly known as Sugam) is probably the form you are looking for.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_GST_and_Other_Aspects_of_Presumptive_Taxation\"><\/span><strong>Benefits, GST and Other Aspects of Presumptive Taxation&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Tax laws could sometimes be quite complex, especially for small businessmen, freelancers, and professionals who simply wish to concentrate on expanding their work.<\/p>\n\n\n\n<p>That&#8217;s where the government&#8217;s Simplified Taxation schemes come in \u2014 making tax returns easy, quick, and hassle-free for small taxpayers.<\/p>\n\n\n\n<p>The government presumes a portion of your overall turnover or receipts as your income under the schemes.<\/p>\n\n\n\n<p>You don&#8217;t need to account for every small item of expense or keep elaborate profit and loss statements.<\/p>\n\n\n\n<p>Operating a small business or professional practice means you could handle two kinds of taxes \u2014 Income Tax and GST.<\/p>\n\n\n\n<p>While presumptive taxation simplifies income tax filing, there are rules for GST as well.<\/p>\n\n\n\n<p>It is essential to understand how GST and presumptive taxation work together so that you do not get confused while remaining compliant.<\/p>\n\n\n\n<p>In the case of income tax and GST, turnover limits are a major factor.<\/p>\n\n\n\n<p>These thresholds determine whether you must register, what tax scheme you can use, and what compliances you have to adhere to.&nbsp;<\/p>\n\n\n\n<p>As per the Finance Act 2023, the turnover limit for opting into presumptive taxation under Section 44AD has been proposed to be increased from \u20b92 crore to \u20b93 crore, provided 95% of the receipts are digital.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_44AE_Tax_Simplification_for_Transporters\"><\/span><strong>Section 44AE: Tax Simplification for Transporters<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Section 44AE is one of the presumptive taxation sections of the Income Tax Act that offers a simplified tax regime to transporters. It allows individuals, Hindu Undivided Families (HUFs), and partnership firms involved in the business of owning and operating goods vehicles to declare their income on a presumptive basis \u2014 without maintaining complex books of accounts.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_Income_Tax\"><\/span><strong>Business Income Tax<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>When you run a business, one of your key responsibilities is to ensure that you&#8217;re compliant with income tax laws.<\/p>\n\n\n\n<p>Business income tax is the tax you pay on profits earned from your business operations. Whether you are a small business owner, freelancer, or member of a large corporation, it is essential to know how business income tax operates to stay away from penalties and ensure a smooth operation.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Audit_Exemption_Limit\"><\/span><strong>Audit Exemption Limit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>In India, some business entities are exempted from tax audit under certain circumstances. It proves to be particularly helpful for small businesses, as it lightens their compliance burden. The exemption limits for audit are based on the business&#8217;s turnover or receipts.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ITR_Filing\"><\/span><strong>ITR Filing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Income Tax Return (ITR) filing is reporting your income, expenses, and tax liability to the Income Tax Department. You are required to file your ITR if you have earnings over the stipulated exemption limit during a financial year. Filing ITR helps you comply with tax legislation and allows you to claim refunds, carry forward losses, and prevent penalties.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Presumptive_Tax_Benefits_Simplifying_Taxation_for_Small_Businesses\"><\/span><strong>Presumptive Tax Benefits: Simplifying Taxation for Small Businesses<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Presumptive taxation is a simplified scheme that allows small businesses and professionals to pay tax based on a fixed percentage of their gross receipts or turnover rather than maintaining detailed accounts and records. The primary benefit of this scheme is that it reduces the compliance burden and makes the tax process simpler and quicker.<\/p>\n\n\n\n<p>Please share your thoughts on this post by leaving a reply in the comments section. Contact us via phone,<a href=\"http:\/\/wa.me\/917347700888\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0WhatsApp<\/a>, or email to learn more about mutual funds, or visit our website,<a class=\"\" href=\"https:\/\/prodigypro.co.in\/\">\u00a0Prodigy Pro<\/a>. Alternatively, you can download the<a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.bfc_mf.prodigy_app&amp;pcampaignid=web_share\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0Prodigy Pro<\/a>\u00a0app to start investing today!<\/p>\n\n\n<div ><style>#sp-ea-605 .spcollapsing { height: 0; overflow: hidden; transition-property: height;transition-duration: 300ms;}#sp-ea-605.sp-easy-accordion>.sp-ea-single {margin-bottom: 10px; border: 1px solid #e2e2e2; }#sp-ea-605.sp-easy-accordion>.sp-ea-single>.ea-header a {color: #ffffff;}#sp-ea-605.sp-easy-accordion>.sp-ea-single>.sp-collapse>.ea-body {background: #fff; color: #444;}#sp-ea-605.sp-easy-accordion>.sp-ea-single {background: #7c8cff;}#sp-ea-605.sp-easy-accordion>.sp-ea-single>.ea-header a .ea-expand-icon { float: left; color: #444;font-size: 16px;}<\/style><div id=\"sp_easy_accordion-1777610590\"><div id=\"sp-ea-605\" class=\"sp-ea-one sp-easy-accordion\" data-ea-active=\"ea-click\" data-ea-mode=\"vertical\" data-preloader=\"\" data-scroll-active-item=\"\" data-offset-to-scroll=\"0\"><div class=\"ea-card ea-expand sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_is_presumptive_taxation\"><\/span><a class=\"collapsed\" id=\"ea-header-6050\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse6050\" aria-controls=\"collapse6050\" href=\"#\" aria-expanded=\"true\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-minus\"><\/i> What is presumptive taxation?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse collapsed show\" id=\"collapse6050\" data-parent=\"#sp-ea-605\" role=\"region\" aria-labelledby=\"ea-header-6050\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Presumptive taxation is a simplified way to calculate taxable income, where businesses or professionals declare a fixed percentage of their gross receipts as income without maintaining detailed books.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Who_can_opt_for_presumptive_taxation\"><\/span><a class=\"collapsed\" id=\"ea-header-6051\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse6051\" aria-controls=\"collapse6051\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Who can opt for presumptive taxation?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse6051\" data-parent=\"#sp-ea-605\" role=\"region\" aria-labelledby=\"ea-header-6051\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Small businesses (individuals, HUFs, partnership firms) with turnover up to \u20b92 crore (Section 44AD).<\/span><\/p><p><span style=\"font-weight: 400\">Professionals like doctors, lawyers, architects, freelancers with gross receipts up to \u20b950 lakh (Section 44ADA).<\/span><\/p><p><span style=\"font-weight: 400\">Transport businesses with up to 10 goods vehicles (Section 44AE).<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_is_the_income_estimation_method_under_Section_44AD\"><\/span><a class=\"collapsed\" id=\"ea-header-6052\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse6052\" aria-controls=\"collapse6052\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is the income estimation method under Section 44AD?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse6052\" data-parent=\"#sp-ea-605\" role=\"region\" aria-labelledby=\"ea-header-6052\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Under Section 44AD, 8% of total turnover is treated as income (6% if turnover is through digital transactions).<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"How_much_income_is_estimated_for_professionals_under_Section_44ADA\"><\/span><a class=\"collapsed\" id=\"ea-header-6053\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse6053\" aria-controls=\"collapse6053\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> How much income is estimated for professionals under Section 44ADA?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse6053\" data-parent=\"#sp-ea-605\" role=\"region\" aria-labelledby=\"ea-header-6053\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Professionals must declare 50% of their gross receipts as income under Section 44ADA.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Is_tax_audit_required_if_I_opt_for_presumptive_taxation\"><\/span><a class=\"collapsed\" id=\"ea-header-6054\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse6054\" aria-controls=\"collapse6054\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Is tax audit required if I opt for presumptive taxation?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse6054\" data-parent=\"#sp-ea-605\" role=\"region\" aria-labelledby=\"ea-header-6054\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">No, if you opt for presumptive taxation and meet the conditions (turnover\/gross receipts within limits), you are exempt from tax audit.<\/span><\/p><\/div><\/div><\/div><\/div><\/div><\/div>\n\n\n<p><strong>Disclaimer \u2013 <\/strong>This article is for educational purposes only and does not intend to substitute expert guidance. Mutual fund investments are subject to market risks. Please read the scheme-related document carefully before investing.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Presumptive Taxation Tax submission may seem daunting, particularly for small business operators and solo professionals with involved income and expense accounts. To simplify matters, several countries, including..<\/p>\n","protected":false},"author":1,"featured_media":614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[940,946,936,935,942,938,937,939,944,941,945,943],"class_list":["post-606","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-income-tax-india","tag-income-tax-return-filing","tag-presumptive-tax-scheme","tag-presumptive-taxation-india","tag-professional-taxation-india","tag-section-44ad","tag-section-44ada","tag-section-44ae","tag-simplified-tax-scheme","tag-small-business-taxation","tag-tax-benefits-india","tag-tax-filing-india"],"_links":{"self":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/comments?post=606"}],"version-history":[{"count":2,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/606\/revisions"}],"predecessor-version":[{"id":615,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/606\/revisions\/615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/media\/614"}],"wp:attachment":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/media?parent=606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/categories?post=606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/tags?post=606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}