Section 44ADA (Presumptive Income for Professionals)

Definition

Scheme allowing specified professionals (doctors, lawyers, CAs, engineers, architects, consultants) to opt for 50% of gross receipts as deemed taxable income, without proving actual expenses.

In Context

Eligible if gross receipts ≤ ₹75L (if 95%+ digital receipts) or ₹50L (standard limit). Simplifies compliance, avoids detailed accounting. Opt via ITR-4. Cannot be used if actual profit margin is below 50%.

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