Presumptive taxation under section 44AD fixes business income by applying turnover-based rates, with reduced rates for electronic receipts.

Taxable business income under the presumptive taxation scheme is computed on a presumptive basis as a prescribed percentage of total turnover or gross receipts, with a reduced percentage where receipts are realized by account payee cheque, draft, electronic clearing system or other prescribed electronic modes; actual income may be declared higher than the presumptive amount.

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