Presumptive income

Deemed profit under the presumptive scheme, so that books of account need not be maintained, subject to the limits.

Business: 8% of turnover, or 6% for amounts received by digital modes. Profession: 50% of gross receipts. Limits: business ₹2 crore (₹3 crore if cash receipts are 5% or less); profession ₹50 lakh (₹75 lakh if cash receipts are 5% or less). The scheme is in sections 44AD and 44ADA of the Income-tax Act, 1961 (now section 58 of the Income-tax Act, 2025). Some professions and persons are not eligible, and opting out carries conditions.