How does Section 44AD presumptive taxation apply to Business Traders?

Under Section 44AD, eligible businesses (turnover up to ₹3 crore, if less than 5% of transactions are in cash; ₹2 crore otherwise) can declare 6% of digital turnover or 8% of cash turnover as taxable income, without maintaining detailed books or a mandatory audit.

What happens if Business Traders opts out of Section 44AD after using it?

Opting out after using Section 44AD in a previous year means the presumptive scheme can't be used again for the next 5 assessment years, and a tax audit becomes mandatory for that period if income exceeds the basic exemption limit.

Updated 13 Oct 2026

Section 44AD Presumptive Taxation for Business Traders

6% (digital) or 8% (cash) of turnover taxed as income under Section 44AD, turnover up to ₹3 crore. with maximised deductions and zero-error filing.

Quick answer

Under Section 44AD, eligible businesses can declare 6% (digital) or 8% (cash) of turnover as taxable income without detailed books, up to ₹3 crore turnover. Indus Tax checks eligibility and files under the scheme correctly.

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