Presumptive taxation for small businesses — 8% (cash) or 6% (digital) of turnover treated as profit.
Section 44AD applies to businesses with turnover up to ₹3 crore (raised from ₹2 cr in Budget 2023, applicable if cash receipts ≤ 5%). Profit deemed at 8% of cash turnover or 6% of digital turnover. No books required.
Small traders, retailers, contractors.
Related terms