MoneyRadar

Tax

Section 44ADA

Also known as: Presumptive taxation

A scheme letting eligible professionals declare 50% of income as profit, skipping detailed books.

Section 44ADA lets specified professionals, like doctors, lawyers, and many freelancers, assume 50% of their receipts are profit.

You are taxed only on that half, and you skip maintaining detailed accounts and audits.

It is a huge simplifier for independent professionals earning up to the prescribed limit.

For example

A freelance designer earning ₹20L can declare ₹10L as profit under 44ADA and pay tax only on that, with minimal bookkeeping.

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