Section 44AD (Presumptive Income for Business)

Definition

Scheme allowing eligible business owners to declare deemed income of 8% of gross turnover (6% if receipts are via digital/banking modes), without proving actual expenses.

In Context

Eligible for businesses with turnover ≤ ₹3Cr (if 95%+ transactions are digital) or ₹2Cr (standard). Opt via ITR-4. Cannot be used by professionals (use 44ADA), F&O traders, or specified professions.

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