This comprehensive guide delves into Section 44ADA of the Income Tax Act, 1961, offering a simplified "presumptive taxation" scheme for eligible self-employed professionals. Discover who qualifies, how to calculate your taxable income at a minimum of 50% of gross receipts, and the significant benefits like exemption from detailed bookkeeping and tax audits. Learn about crucial compliance aspects, including advance tax and the increased ₹75 Lakhs gross receipts limit, to make informed decisions for smarter tax planning and effortless compliance.

This post offers an in-depth overview of key Income Tax Act sections (44AA, 44AB, 44AD, 44ADA) applicable for AY 2025-26 (FY 2024-25). It details the requirements for maintaining accounting records and mandatory tax audits based on income/turnover thresholds. It also explains the presumptive taxation schemes for eligible small businesses (44AD) and professionals (44ADA), including updated limits and the implications of opting for or out of these schemes. The guide aims to clarify compliance duties for taxpayers

This blog explains how opting for presumptive taxation under Sections 44AD (businesses) and 44ADA (professionals) simplifies Advance Tax obligations, requiring only a single payment by March 15th instead of quarterly installments. It covers eligibility, calculation, and non-compliance consequences.

For the fiscal year 2025–2026, this blog offers a comprehensive guide on Sections 44AA, 44AB, 44AD, and 44ADA of the Income Tax Act. Bookkeeping, presumptive taxation schemes, tax audit requirements, and compliance advice for professionals and corporations are all covered.