What is Section 44ADA of Income Tax Act?
Nexa Consultancy | Startup & Finance Glossary
A presumptive taxation scheme for small professionals in India. Eligible professionals can declare 50% of their gross receipts as their income, and this is taxed. It simplifies tax compliance as detailed books of accounts are not required.
Startup Example: A freelance consultant with gross annual receipts of ₹40 Lakhs can opt for this scheme. She can declare ₹20 Lakhs (50%) as her taxable income without needing to maintain detailed expense records.
Our tax services help freelancers and consultants leverage such schemes.