Presumptive Taxation (44AD & 44ADA): A Guide for Small Businesses & Professionals
S
Statura Team
Presumptive taxation simplifies compliance for small businesses and professionals by taxing a presumed percentage of turnover as income — no detailed books or audit required (within limits).
Section 44AD — Small Businesses
Eligible businesses declare 8% of turnover as income (6% for digital receipts), up to the turnover cap. No need to maintain detailed accounts.
Section 44ADA — Professionals
Specified professionals (doctors, lawyers, consultants, etc.) can declare 50% of gross receipts as income, within the receipts limit.
Points to Watch
- Once you opt in, you should stay in for 5 years (for 44AD) to avoid audit triggers.
- You cannot claim further business expense deductions.
Statura advises small businesses and professionals on whether presumptive taxation saves money and handles their ITR filing.
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