TaxTMI 
TaxTMI 
Presumptive Taxation 44ada- 50% of Gross or actual expense
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....resumptive Taxation 44ada- 50% of Gross or actual expense<br> Query (Issue) Started By: - Shan S Dated:- 27-3-2026 Last Reply Date:- 27-3-2026 Income Tax<br>Got 1 Reply<br>Income Tax<br>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; R....
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....eply By YAGAY andSUN: The Reply: You're basically asking whether you can claim a flat 50% deduction or need to prepare a full Profit & Loss (P&L) and show actual expenses. This depends on whether you opt for the presumptive taxation scheme under Indian tax law. 1. If you choose Presumptive Taxation (Section 44ADA) • Applicable for professionals (like doctors, lawyers, freelan....
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....cers, consultants, etc.) • You can declare 50% of gross receipts as income • No need to maintain books of accounts or prepare a P&L • No need to prove actual expenses So yes, in this case: You can directly take 50% of gross income as taxable profit No detailed expense calculation required 2. If you do NOT opt for Presumptive Taxation â€....
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.... Then you must: • Maintain proper books of accounts • Prepare a P&L statement • Claim actual expenses only In this case: You cannot just take 50% arbitrarily Only real, supported expenses are allowed 3. Important Conditions for 44ADA • Total gross receipts should be Rs. 50 lakh (Rs. 75 lakh in some cases with digital receipts) ....
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.... • If you declare less than 50% profit, then: • Books of accounts + audit may be required Bottom Line • Want simplicity choose 44ADA flat 50% income • Want to claim higher expenses go with actual P&L <br> Discussion Forum - Knowledge Sharing ....