Presumptive Taxation 44ada- 50% of Gross or actual expense

[Shan S]

For professional Income,

50% of the Gross Income can be taken directly without calculating the expenses

or should show the actual expenses after calculating the total expenses by preparing P&L;

 

AI Summary

Presumptive taxation lets eligible professionals treat half of gross receipts as income without books or actual expense proof.
Presumptive taxation under Section 44ADA allows eligible professionals to declare 50% of gross receipts as taxable income without maintaining books of account, preparing a profit and loss statement, or proving actual expenses. If the scheme is not chosen, proper books must be maintained and only actual, supported expenses may be claimed. The scheme is subject to gross receipt conditions, and declaring income below the presumptive rate may trigger books and audit requirements.