Section 44AD vs 44ADA

Sections 44AD and 44ADA are presumptive-taxation windows that let eligible taxpayers declare income as a fixed % of turnover (44AD) or gross receipts (44ADA), avoiding books of accounts and tax audit under section 44AB. 44AD applies to resident individuals, HUFs, and partnership firms (excluding LLP) engaged in any business (other than 44AE / 44B / 44BB agencies) where turnover ≤ ₹3 crore (or ₹75 lakh if cash receipts exceed 5%); the deemed income is 8% of digital turnover and 6% of cash turnover. 44ADA applies to specified professions with gross receipts ≤ ₹75 lakh (or ₹50 lakh if cash receipts exceed 5%); deemed income is 50% of gross receipts (deemed 50% of expenditure). The taxpayer must declare the deemed income in ITR-3 / ITR-4, can opt out once in a lifetime, and advance-tax rules apply when the declared income is more than 110% of the previous-year deemed income.