<h1>Small Traders Benefit from Reduced Tax Liability with Digital Payments u/s 44AD of Income-Tax Act.</h1> The government has modified presumptive income norms to reduce tax liabilities by up to 30% for small traders using digital transactions. Previously, traders with turnovers up to Rs. 2 crore were presumed to earn 8% income for tax purposes. Now, if they use digital payments, their presumed income is reduced to 6%. This change, under Section 44AD of the Income-Tax Act, aims to incentivize digital transactions and support the government's push towards a less cash-dependent economy. The Central Board of Direct Taxes announced this adjustment as part of broader efforts following the demonetization of Rs. 500 and Rs. 1,000 notes.