Presumptive Taxation Scheme Matrix
Prescribed deemed profit rates, enhanced non-cash digital turnover limits up to ₹3 Crore, single-installment advance tax compliance, and Section 56/63 statutory audit exemptions under Section 58(2) of the Income-tax Act, 2025 (Sections 44AD / 44ADA / 44AE of 1961 Act).
Statutory Presumptive Rates & Eligibility Matrix
Comparative provisions under Section 58(2) of the Income-tax Act, 2025 vs legacy Sections 44AD, 44ADA, and 44AE.
Presumptive Scheme Rate Matrix
Section 58(2) Table (Act 2025) vs Sections 44AD / 44ADA / 44AE (Act 1961)
| Statutory Citation (Act 2025 / 1961) | Eligible Business / Profession | Statutory Turnover Limit | Deemed Profit Rate | Compliance & Exemptions |
|---|---|---|---|---|
Section 58(2) Table (Item 1) Section 44AD | Small Business Enterprises (Retail, Wholesale, Manufacturing, Services) Eliminates requirement to maintain detailed books of account under Section 56 and statutory audit under Section 63. | ₹2 Crore (Enhanced to ₹3 Crore if aggregate cash receipts ≤ 5%) 5% Cash Rule Eligible | 6% of digital/banking turnover; 8% of cash turnover | Advance Tax: 100% by 15th March ✓ No Tax Audit (Sec 63) ✓ No Books of Account (Sec 56) |
Section 58(2) Table (Item 2) Section 44ADA | Specified Professionals (Legal, Medical, Engineering, Accountancy, Technical Consultancy, Interior Decoration) No maintenance of books of account under Section 56 or audit under Section 63 required. | ₹50 Lakh (Enhanced to ₹75 Lakh if aggregate cash receipts ≤ 5%) 5% Cash Rule Eligible | 50% of gross professional receipts | Advance Tax: 100% by 15th March ✓ No Tax Audit (Sec 63) ✓ No Books of Account (Sec 56) |
Section 58(2) Table (Item 3) Section 44AE | Goods Carriage Transporters (Owning not more than 10 goods vehicles at any time during the tax year) Presumptive profit calculation applies per vehicle per month or part of a month owned. | Max 10 Goods Carriages | Heavy Goods Vehicle (>12MT): ₹1,000/ton of gross vehicle weight per month. Other vehicles: ₹7,500/vehicle per month | Advance Tax: 100% by 15th March ✓ No Tax Audit (Sec 63) ✓ No Books of Account (Sec 56) |
Small Business Enterprises (Retail, Wholesale, Manufacturing, Services)
Eliminates requirement to maintain detailed books of account under Section 56 and statutory audit under Section 63.
Specified Professionals (Legal, Medical, Engineering, Accountancy, Technical Consultancy, Interior Decoration)
No maintenance of books of account under Section 56 or audit under Section 63 required.
Goods Carriage Transporters (Owning not more than 10 goods vehicles at any time during the tax year)
Presumptive profit calculation applies per vehicle per month or part of a month owned.
Interactive Presumptive Tax Simulator
Simulate deemed profit, 5% cash threshold eligibility, and audit exemption limits in real time.
Section 44AD · Small Business Inputs
Applies to Resident Individuals, HUFs, and Firms (Non-LLP).
Cash receipts exceed 5% threshold. Maximum turnover limit under presumptive scheme is ₹2.00 Crore.
Computed Presumptive Income
5-Year Lock-In (Sec 44AD(4))
If an eligible assessee opts out of the presumptive scheme in any tax year after declaring profits under Section 44AD, they cannot opt back into Section 44AD for 5 consecutive assessment years and must maintain books of account and undergo a statutory audit under Section 63 (44AB).
5% Non-Cash Rule (Enhanced Limits)
The enhanced turnover limits of ₹3.00 Crore for businesses (44AD) and ₹75.00 Lakh for professionals (44ADA) apply strictly if aggregate cash receipts during the financial year do not exceed 5% of total turnover or gross receipts.
100% Advance Tax by 15th March
Assessees opting for presumptive taxation under Section 44AD or 44ADA are exempt from paying quarterly advance tax installments. They must pay 100% of their advance tax liability in a single installment on or before 15th March of the financial year.