Section 44ADA - Presumptive Taxation for Professionals
Professionals (doctors, lawyers, architects, CAs, engineers, interior designers, technical consultants) with gross receipts up to ₹75 lakh can declare 50% as income without maintaining books.
Key provisions
- Gross receipts limit: ₹75 lakh (₹1.87 crore if 95%+ digital receipts from FY 2023-24 amendment)
- Minimum declared income: 50% of gross receipts
- No books of accounts or audit required if opted
- Eligible professions: legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, authorised representative, film artist, company secretary, information technology
- If actual income is higher, you can declare higher - 50% is the minimum
- Can claim deductions for own salary if partner in a professional firm
FAQs
Legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, authorised representative, film artists, company secretaries, and information technology professionals. Notified by the CBDT. Not available for trading or manufacturing businesses.
Use via API
GET/v1/tax-law/sections/by-2025-ref/194
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REQUEST · cURL
curl https://api.thynktax.com/v1/tax-law/sections/by-2025-ref/194
RESPONSE · 200 OK
{
"act_2025_ref": "194",
"old_reference": "Section 44ADA, Income Tax Act 1961",
"title": "Section 44ADA - Presumptive Taxation for Professionals",
"category": "Presumptive Taxation",
"limit_or_rate": "50% of gross receipts",
"applicable_to": "Specified professionals - Individual and Partnership firms",
"effective_from": "2026-04-01"
}