Small businesses can declare profits at 8% of turnover, or 6% of digital receipts, under Section 44AD. This applies up to turnover of ₹2 crore, or ₹3 crore where cash receipts are within 5%. Books of account and audit are then generally not required.
Specified professionals such as doctors, CAs, architects and consultants can declare 50% of gross receipts as income under Section 44ADA, up to ₹50 lakh, or ₹75 lakh where cash receipts are within 5%.
Key points
- Advance tax can be paid in a single instalment by 15 March
- Opting out of 44AD bars re-entry for five years
- Declaring lower profits can trigger audit requirements
General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.
CA Rahul Rajendra MohiteACA, M.Com · ICAI Membership No. 622387 · Founder, Rahul R. Mohite & Co., PuneFirm profile and key facts