1Can a practising CA use Section 44ADA?
Yes — accountancy is a specified profession under 44ADA. Within Rs 50 lakh receipts (Rs 75 lakh where cash is 5% or less), you can declare 50% as income with no audit and no detailed books.
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ArticleChartered accountants in practice know the rules better than anyone — but a busy season often means their own planning slips. Here's a tight checklist for CAs to save tax on professional income while staying squarely compliant.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
CAs in practice are professionals under 44ADA, can expense their firm properly, and should run advance tax and retirement deductions tightly. Here's the playbook.
With professional receipts within Rs 50 lakh (Rs 75 lakh where cash is 5% or less), 44ADA lets you declare 50% as income with no audit. If your firm's real costs — staff, office, software, subscriptions — run above half your receipts, claiming actual expenses under regular books will save more. Pick deliberately, not by habit.
If you're not using presumptive, claim every legitimate practice cost: staff salaries, office rent, professional software and portals, books and journals, depreciation on equipment, and travel. Clean books also make your own return audit-proof.
In the old regime, use 80C up to Rs 1,50,000, then add the Rs 50,000 NPS deduction under 80CCD(1B) above it. For a self-employed professional without an employer pension, this is a tax-efficient way to build a retirement corpus.
Don't overlook 80D health insurance (Rs 25,000, plus up to Rs 50,000 for senior parents) and home-loan interest up to Rs 2,00,000 under Section 24(b). Stack these in the old regime and compare the total against the new regime's simpler Rs 75,000 standard deduction and higher exemption.
You advise clients to pay advance tax on time — apply it to yourself. If your tax exceeds Rs 10,000, pay across 15 June, 15 September, 15 December and 15 March to avoid 234B/234C interest at 1% a month. Estimate professional income early so a strong year doesn't create an interest bill.
Yes — accountancy is a specified profession under 44ADA. Within Rs 50 lakh receipts (Rs 75 lakh where cash is 5% or less), you can declare 50% as income with no audit and no detailed books.
When firm costs exceed 50% of receipts. Staff, office, software and depreciation can easily cross half your receipts in a growing practice — then regular books with actual expenses save more.
Exactly as you'd advise a client — pay in four instalments if tax exceeds Rs 10,000. Estimate professional income early so a strong year doesn't trigger 234B/234C interest.
Want a second pair of eyes on your own numbers this season? Write to the firm — we're happy to compare notes.