An eligible 44AD assessee has turnover of Rs 2,98,50,000, of which Rs 14,00,000 was received in cash and the balance through prescribed electronic modes before the due date under section 139(1). The presumptive income is:

1. Cash receipts are 14,00,000 / 2,98,50,000 = 4.69%, not exceeding 5%, so the enhanced turnover threshold of Rs 300 lakhs applies and the assessee stays eligible for section 44AD. 2. The 8% rate applies to the cash component: 8% x 14,00,000 = Rs 1,12,000. 3. The 6% rate applies to amounts received by account payee cheque/draft/ECS or prescribed electronic modes during the year or before the section 139(1) due date: 6% x 2,84,50,000 = Rs 17,07,000. 4. Presumptive income = 1,12,000 + 17,07,000 = Rs 18,19,000. 5. Option A applies 8% to the whole turnover; option B applies 6% to the whole; option C applies 5% — none splits the turnover by mode of receipt as the section requires. _Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 3 PGBP, PDF p. 122_