BooksIQA resident individual or partnership firm (not an LLP) carrying on a specified profession with gross receipts up to ₹50 L (₹75 L if 95%+ digital) can declare presumptive income at 50% of gross receipts.
Key points
- The eligible assessee is a resident individual or partnership firm (NOT an LLP, NOT a Pvt Ltd company) carrying on a §44AA(1) specified profession — CA, CS, CMA, lawyer, doctor, architect, engineer, interior designer, technical consultant, film artist, IT professional, or authorised representative.
- The receipts cap is ₹50 L, raised to ₹75 L where cash receipts are ≤ 5% of total receipts (Finance Act 2023).
- The presumptive rate is 50% of gross receipts, and no separate deduction is allowed for any expense, depreciation, salary, or interest.
- Advance tax is a single instalment by 15 March;
- the regular quarterly schedule does not apply.
- A tax audit is triggered under §44AB if the assessee declares profit below 50% AND total income exceeds the basic exemption limit.
Reference: §44ADA, ITA 1961 — under ITA 2025 (FY 26-27 onwards), this is §58
This page is general information for Indian businesses, current as of the
financial year shown above — not legal or tax advice. Tax law changes,
and how a provision applies depends on your specific facts. Confirm the
current position with a qualified professional before you act.
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