1Who can use 44AD?
44AD is for eligible resident small businesses, not companies or LLPs. Professional income belongs in 44ADA if eligible; commission/brokerage and some agency businesses need separate review.
6%/8%, turnover limits, the 5-year lock-in, audit triggers and 44AD vs 44ADA.
Last updated 2026-06-12 · Covers FY 2025-26 and FY 2026-27
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44AD is for eligible resident small businesses, not companies or LLPs. Professional income belongs in 44ADA if eligible; commission/brokerage and some agency businesses need separate review.
44AD has a turnover ceiling, with a higher limit where cash receipts stay within the permitted percentage. Check the current year's limit and cash-receipt test before using presumptive business tax.
44AD is for eligible resident small businesses, not companies or LLPs. Professional income belongs in 44ADA if eligible; commission/brokerage and some agency businesses need separate review.
The lower 6% presumptive rate is generally for eligible digital receipts; 8% applies otherwise. UPI/bank channels can support the digital rate where the statutory conditions are met.
The lower 6% presumptive rate is generally for eligible digital receipts; 8% applies otherwise. UPI/bank channels can support the digital rate where the statutory conditions are met.
The lower 6% presumptive rate is generally for eligible digital receipts; 8% applies otherwise. UPI/bank channels can support the digital rate where the statutory conditions are met.
44AD has a 5-year lock-in consequence if you opt out after using it. That lock-in is a major difference from 44ADA and should be checked before declaring lower profit.
The lower 6% presumptive rate is generally for eligible digital receipts; 8% applies otherwise. UPI/bank channels can support the digital rate where the statutory conditions are met.
Declaring below the presumptive rate can trigger books and audit if income conditions are met. Loss cases need care because audit, carry-forward and return due date interact.
44AD and 44ADA solve different problems. Use 44AD for eligible businesses and 44ADA for specified professions; mixed income can require both schedules in one return.
44AD and 44ADA solve different problems. Use 44AD for eligible businesses and 44ADA for specified professions; mixed income can require both schedules in one return.
44AD and 44ADA solve different problems. Use 44AD for eligible businesses and 44ADA for specified professions; mixed income can require both schedules in one return.
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