income-tax

Presumptive Taxation: Section 44AD & 44AE Guide

Presumptive income taxation for businesses under Section 44AD, 44AE. Deemed income, deductions.

GetYourCA Team
1 April 2026·Updated 1 April 20261 min read12.5K views
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Presumptive Taxation#

Section 44AD (Business)#

  • Turnover up to ₹3 crore
  • 8% deemed profit
  • No maintenance of books

Section 44AE (Vehicles)#

  • Goods carriers: ₹7,500 per vehicle
  • Passenger: ₹3,000 per seat

Who Can Opt?#

  • Resident individual/HUF
  • Partnership firm
  • Turnover within limit

Procedure#

  1. Calculate deemed income
  2. Claim deductions
  3. File ITR-4
  4. Pay tax

Key Points#

  • No audit required
  • Cannot claim additional deductions
  • Can maintain books optionally

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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