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HomeCA FinaltaxationProfits and Gains of Business or Profession › Section 44ADA presumes income at:

Section 44ADA presumes income at:

A8%
B50% of gross receipts (75% with digital)
C6%
D30% (per relevant Section) (per relevant Section)
Answer & Solution
Correct answer: B. 50% of gross receipts (75% with digital)
1. Section 44ADA covers specified professions (legal, medical, engineering, etc.). 2. Income presumed at 50% of gross receipts; limit Rs. 50 lakhs (Rs. 75 lakhs from FY24-25). 3. Higher income may be declared; lower needs books and audit. _Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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