Presumptive Tax: Declare 50% Income as Profit

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

By ThePip Desk12 Apr 2026, 4:45 PM IST

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

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.