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Small businesses under 44AD
Turnover up to ₹2 crore, or ₹3 crore if cash received is 5% or less of turnover.
Income Tax
Presumptive Taxation Advisory
Sections 44AD, 44ADA and 44AE let eligible businesses and professionals declare income at a fixed rate, without maintaining detailed books. We advise on eligibility and file accordingly.
44AD · 44ADA · 44AEChecked by a CA before filing
₹1,149 + GST
CAreviewed, every filing
Overview
What is presumptive taxation?
Presumptive taxation lets eligible small businesses, professionals and transporters declare income at a fixed percentage of turnover or receipts, under sections 44AD, 44ADA or 44AE, without maintaining detailed books or facing a mandatory tax audit.
Who it's for
Who can use presumptive taxation?
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Professionals under 44ADA
Gross receipts up to ₹50 lakh, or ₹75 lakh if cash received is 5% or less of receipts.
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Transporters under 44AE
Owning up to 10 goods carriages.
Schemes
Presumptive taxation schemes
Section 44ADBusiness income
Declare 8% of turnover as taxable profit (6% on turnover received by bank transfer, UPI, card or account payee cheque), without maintaining books.
Section 44ADAProfessional income
Declare 50% of gross receipts as taxable profit. For specified professions such as legal, medical, engineering, architecture, accountancy, technical consultancy and interior decoration.
Section 44AETransport income
A fixed presumptive income per vehicle, per month, for owners of goods carriages.
Documents required
Documents required for presumptive filing
- ✓PAN & AadhaarIdentity proof of the taxpayer.
- ✓Bank statementsTo confirm turnover/receipts and digital vs cash mix.
- ✓Prior year ITR, if anyTo check eligibility and consistency of scheme usage.
- ✓Vehicle registration detailsFor transporters filing under 44AE.
How it works
Presumptive taxation advisory process
01
Check eligibility
We confirm your turnover or receipts fall within the applicable limit.
02
Compute presumptive income
We compute income at the applicable rate and your resulting tax liability.
03
Filed under the scheme
DoneReturn is filed (ITR-4 if you qualify, otherwise ITR-3) with the presumptive income declared.
Pricing
Presumptive taxation advisory fees
One transparent professional fee, confirmed in writing before we begin.
- Covers eligibility check, computation and filing.
Avoid these
Common mistakes to avoid
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Switching in and out too often
Leaving 44AD within five years of using it shuts you out of 44AD for the next five years, with books and a tax audit if your income is above the exemption limit.
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Ignoring the digital-receipts distinction
Missing the lower presumptive rate available for turnover received digitally.
Why us
Why choose FilingSetu?
Real accountants, fixed fees, and a person who knows your file.
Real chartered accountants
Every return is checked by a chartered accountant before it is filed.
One fixed fee, in writing
The fee you see is what you pay.
A named manager
One point of contact who knows your file end to end.
Handled end to end
From review to filing, we manage every step.
FAQ
Presumptive Taxation Advisory, answered.
Can I claim business expenses under presumptive taxation?
No. The declared percentage is deemed to cover all expenses; no separate expense deduction is allowed.
What if my actual profit is lower than the presumptive rate?
You can declare a lower profit. Under 44ADA, you then need books and a tax audit if your income is above the exemption limit. Under 44AD, it can also shut you out of the scheme for five years.
Wondering if presumptive taxation fits you?
Talk to an Expert about 44AD, 44ADA or 44AE. Free, no obligation.