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Home/Business/Economy/Presumptive Tax: Declare 50% Income as P…

Presumptive Tax: Declare 50% Income as Profit

Economy
By ThePip Desk•
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A man in glasses works on a laptop at a cluttered desk with a ledger, calculator, Indian currency, and a note reading "50% Profit".

A professional works on finances, with a note on presumptive tax and Indian rupees on a wooden desk.

Key Highlights

Simplify tax compliance! Professionals can declare 50% of income as profit under presumptive taxation (Section 44ADA, Income Tax Act, 1961).

Professionals who are not salaried can declare 50% of their income as profit by opting for presumptive taxation.

Under Section 44ADA of the Income Tax Act, 1961, an assessee choosing presumptive taxation benefits from simplified compliance.

They are not required to maintain detailed books of account, provided they declare income at 50% or more of their gross receipts.

Income Tax Act, 1961