Presumptive tax for professionals — Section 44ADA (CAs, doctors, consultants)

Who's eligible

Specified professionals — legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration and similar. So a practitioner doing accountancy, GST returns, income-tax returns and TDS work squarely qualifies.

The scheme (old Section 44ADA)

• Gross receipts up to ₹75 lakh (if cash receipts are ≤5%; otherwise ₹50 lakh).
• Declare 50% of gross receipts as your income — the rest is deemed to cover all expenses.
• No books of account, no tax audit. File ITR-4.

"Can I declare a higher gross than my actual receipts?"

Presumptive income is 50% of your actual gross receipts — you can declare more than 50% if your real profit is higher, but you can't invent receipts you didn't earn. If your actual receipts are ₹4–5 lakh, your presumptive income is ~₹2–2.5 lakh (or more if you choose). To declare less than 50%, you'd need books and a tax audit.

When presumptive isn't ideal

If your real expenses exceed 50% of receipts, normal books may give a lower taxable income — but then audit rules can apply. We'll tell you which is cheaper for your practice.

Transporters use Section 44AE; small businesses use old 44AD (8%/6%).