## Presumptive Taxation — Sections 44AD / 44ADA / 44AE
### Section 44AD — Eligible Businesses
| Item | Detail |
|---|---|
| Eligible assessee | Resident Individual, HUF, or Firm (other than LLP) |
| Not applicable to | Persons covered u/s 44AE/44ADA; persons earning commission/brokerage; agency businesses; persons claiming benefit u/s 10AA or Chapter VI-A (Heading C) |
| Turnover limit | ≤ ₹2 crore (raised to ₹3 crore if cash receipts ≤ 5%) |
| Presumptive income | 8% of turnover received in cash; 6% of turnover received via prescribed modes (received within the P.Y. or before the 139(1) due date) |
Lock-in — Section 44AD(4):
- Once opted, the assessee must declare under Section 44AD for the next 5 consecutive A.Ys.
- If the assessee stops declaring under 44AD in any of those years, they lose the 44AD benefit for the next 5 years following the year of non-declaration (and must maintain books / get audited if income exceeds BEL).
### Section 44ADA — Notified Professions
| Item | Detail |
|---|---|
| Eligible assessee | Resident Individual or partnership (other than LLP) in a notified profession u/s 44AA(1) |
| Gross receipts limit | ≤ ₹50 lakh (≤ ₹75 lakh if cash receipts ≤ 5%) |
| Presumptive income | 50% of gross receipts (or higher, if claimed) |
### Section 44AE — Plying/Hiring/Leasing Goods Carriages
| Item | Detail |
|---|---|
| Eligible assessee | Any assessee owning not more than 10 goods carriages at any time during the P.Y. |
| Presumptive income | ₹1,000 per ton per month (or part) for each heavy goods vehicle (gross/unladen weight); ₹7,500 per month (or part) for other goods vehicles |
### Common Conditions / Clarifications
- Deemed deductions: All deductions under Sections 30–38 are deemed already allowed. No separate set-off of depreciation or unabsorbed depreciation.
- Business losses: Losses u/s 72, 73, 73A can be set off against presumptive income.
- Interest & remuneration to partners: Allowed (subject to Section 40(b) limits) only under Section 44AE. NOT deductible under Sections 44AD and 44ADA.