Presumptive Taxation (44ADA) ITR Filing

Overview

Presumptive Taxation under Section 44ADA is a simplified filing scheme designed for specified professionals such as doctors, lawyers, consultants, IT freelancers, designers, and architects with gross receipts up to ₹75 lakh. Under this scheme, 50% of gross receipts is deemed as taxable profit, without the need to maintain detailed books of accounts or undergo a tax audit. This significantly reduces compliance burden for freelancers and professionals while remaining fully compliant with the Income Tax Act, 1961. However, correct application requires confirming eligibility under the specified professions list, verifying the cash receipt threshold condition, and understanding the 5-year lock-in restriction that applies once the scheme is opted out of after prior use.