<h1>Government Lowers Deemed Profit Rate to 6% for Small Businesses Using Digital Payments u/s 44AD.</h1> The government has decided to reduce the deemed profit rate under section 44AD of the Income Tax Act from 8% to 6% for businesses with a turnover of up to Rupees Two Crore, when the turnover is received through banking channels or digital means for the financial year 2016-17. This measure aims to encourage small traders and businesses to adopt digital payment methods as part of the government's push towards a less cash-dependent economy. The 8% rate will still apply to cash transactions. A legislative amendment for this change will be introduced in the Finance Bill, 2017.