Presumptive schemes simplify tax for small taxpayers:
- Section 44AD — eligible businesses declare profit at 8% of turnover (6% for digital receipts), for turnover up to ₹2 crore (₹3 crore if cash receipts are within 5%).
- Section 44ADA — professionals like doctors, lawyers and consultants declare 50% of gross receipts as income, for receipts up to ₹50 lakh (₹75 lakh if cash receipts are within 5%).
You avoid maintaining detailed books and a tax audit, but once you opt out of 44AD you're locked out for five years.
This is general information, not professional advice — confirm the current position for your specific case before acting.
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