Presumptive Taxation under Section 44AD for Small Businesses

Section 44AD allows resident individuals, HUFs, and partnerships (other than LLPs) to declare income at 8 percent of turnover for non-digital receipts and 6 percent for digital receipts when turnover is up to Rs 75 lakh (Rs 2 crore if cash receipts do not exceed 5 percent of total). No books of accounts or audit required under 44AD. Advance tax in a single instalment by March 15 is sufficient if the entire advance tax is below Rs 10,000. Opting out of presumptive taxation requires declaring regular income and maintaining books for five years.